Can a property manager sign a lease purchase agreement with a tenant without your knowledge?

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We put an offer on a property, paid earnest money and prior to closing, the property managment company signed a lease purchase agreement with a tenant. We were not made aware of this until over a month after the closing. We feel that we have lost control of this investment as we can’t sell it or fire the property managment company whenever we want.


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In addition to Ted’s comments, I would also review a copy of the agreement you have with the property management company. Does the agreement give them the right to sell the property on a lease purchase? (This would be highly irregular.) Does PM contract transfer with the sale of the property like a lease? (Also highly irregular.) In my experience in property management, they do not have the right to negotiate and accept a lease purchase without the written consent of the owner.

Answered 6 months ago

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That’s a tricky situation. You might want to ask a local real estate attorney. Purchases are subject to existing leases, but if the lease was renewed/modified between the time you had an accepted sales contract and the actual closing, at a minimum you did not receive the property in the same status it was when you wrote the sales contract. If it were me, I’d be taking my sales contract and the prior lease (which you should have gotten a copy of) to an attorney for a quick (and hopefully free or reasonably priced) consultation.

updated 6 months ago
Ted Rood
1312 6
Answered 6 months ago
Ted Rood
1312 6

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