- Is the tenant of your single family home or condo occupying the property on a fixed term lease or month-to-month? This status is more important on single units than on multi-unit properties, since buyers of single units (single family home or condo) usually wish to occupy the home themselves after purchase.
- How long has the property been a rental? Find out the tax consequences of a planned sale and whether you can defer all or part of capital gains taxes with a 1031 Exchange. You must know the facts BEFORE you sell.
- Inform the tenant of the planned sale and work out a plan of mutual cooperation. Making concessions and accommodating the tenant’s needs regarding showings and their move date goes a long way towards promoting a smooth sale of the property. More sales have been derailed by grouchy, uncooperative tenants than necessary.
These points are important to address whether the owner sells from an equity position or is forced to sell due to mortgage default. Tenants and landlords each have rights and obligations. Know what they are and observe them to avoid difficulties and unnecessary legal claims during and after the sale. For more information or for a FREE, no obligation consultation regarding your specific rental situation in Orange County, CA contact Sylvia Jonathan at (714) 856-7003.