One of the hardest items when Apartments are taken over by the “new” Buyer is to ascertain who owns the personal property. Are some of the Stoves or Refrigerators owned by the Tenants as this sometimes happens.
There can be a myriad of items that could be in question. When a Tenant leaves the property and if they believe that they own the Washer and Dryer, there can be issues.
While often spelled out in the leases, it makes good sense to obtain this information from the Seller when we list the property. I create what is called a Schedule of Personal Property that the Seller signs and is included with all of my contract documents. Also, we want the Buyer to sign this document as well. Then as much as possible , the “gray” area of this has been removed. This document is also sent to Title so that they can prepare a Bill of Sale for these items.
If items are leased we need to disclose this as well. If Solar, there are actually very definite forms for the Seller to send as well as the Buyer to sign. Could there be a laundry lease in a common laundry area? It’s important to have the laundry lease on hand and with my listings it is.
I strive to take a lot of the guesswork out of contracts and make it really clear to the potential Buyer and Buyer’s agent.
Below are brief items about Leased or Owned Personal Property.
Leased Property or Owned Property
When fixtures (such as water softeners, reverse osmosis filters, hot water heaters etc.) are leased, they will generally be returned to the vendor (lessor). If the buyers do not know that these fixtures are leased, they expect these items to be present in the property when they take possession of the property. The buyer’s agent should take responsibility to find out which fixtures are leased, and ensure that these items are excluded from the contract.
Fell free to call or email me!
Have a great day!
Linda Gerchick, CCIM