landlord has legal problems...

[StockAnswer]

Hi all,

wanted to ask anyones advice on this issue.

We rented this condo we live in, back in November last year on a two-year lease. For the last 2-3 months the landlady has received a couple of letters with seemingly urgent material (express mail requiring signature kind of stuff) to our home.

About 6 weeks ago one of the security guards came to us and told us that someone had been looking for the landlady and had left a notification about a package that needed to be signed for. According to the guard it looked like a serious problem. More recently one of the condo managers came to our door looking for the landlady, mentioning something about legal problems.

Our landlady, on another hand, told us a week or so ago that she was going out of the country for about a month.

Now we are wondering whether the financial institution (that our landlady has told us she is making payments to) has not received any payments...

If that is the case, is it possible that we have to move out? What can happen with our lease if she has stopped paying the bank?

cheers

[jpatokal]

Now we are wondering whether the financial institution (that our landlady has told us she is making payments to) has not received any payments...

If that is the case, is it possible that we have to move out? What can happen with our lease if she has stopped paying the bank?

Entirely possible, yes -- if the bank takes over the apartment, they will probably kick you out so they can sell it. They won't do this except as a last resort though, so no need to panic yet. When does your lease end?

[Saint]

As soon as you believe you have proof that the bank is going to take over the property, stop paying the rent until you've recovered your deposit back. Can't see you getting it back off the LL if it's got to that situation so you wont be too much out of pocket.

[ScoobyDoes]

Thinking allowed.......

If the apartment passes back from the owner to the bank/financial institution, isn't this the same as selling on to somebody else anyway, meaning the rental contract duly stamped is still in force?

Instead of paying the LL you now pay the new LL, in effect the bank and live out the balance of the contract?

Don't know what's best to do with regards the deposit though, maybe Saint is right on that one.

[jpatokal]

If the apartment passes back from the owner to the bank/financial institution, isn't this the same as selling on to somebody else anyway, meaning the rental contract duly stamped is still in force?

Unlikely. Your lease and the landlord's mortgage terms will almost certainly have language that allows them to kick you out. Of course, it may also be in the bank's best interest to let you keep staying there and paying the rent...

Don't know what's best to do with regards the deposit though, maybe Saint is right on that one.

It's a two-edged sword; if you stop paying your rent, you can get kicked out within a week after it becomes overdue. Unless it becomes clear that the bank is about to take over, I would only withhold the last month's rent in lieu of deposit.

[StockAnswer]

Thank you for your replies so far, all of you.

Entirely possible, yes -- if the bank takes over the apartment, they will probably kick you out so they can sell it. They won't do this except as a last resort though, so no need to panic yet. When does your lease end?

Our lease is until close to the end of November 2010.

cheers

[StockAnswer]

Would anyone know if there is a way for us to find out what is going on between the landlady and the bank?

Or do we just have to wait and see what happens?

cheers

[ksl]

Would anyone know if there is a way for us to find out what is going on between the landlady and the bank?

Or do we just have to wait and see what happens?

cheers

It's quite possible for the owner to have passed away, and their estate is being sorted out by family members, who knows.

I should sit tight and see what happens, either way, it's not your fault. and if the estate is transferred, you cannot normally be turned out until the end of the contract, and that also includes the bank taking it over, it's no sweat at all for the bank, they are sitting on an asset, with minimum risk of loss, so in the event, they wanted you out, a court order for your removal would have to be applied for, even if you failed to pay the rent and the courts would normally allow a reasonable time to find alternative housing, if they was going to kick you out.

If anyone tells you to move out, refuse and request a court order for your removal, or the amount of time you think you will need to find alternative suitable accommodation.

[StockAnswer]

Thanks for your reply ksl.

By the way my landlady called today to inform me that they are selling the condo.

She asked about what times would suit us to show the condo to prospective buyers.

In any case this will mean that we will have to eventually settle the closure of the contract and get the security deposit back from her. What kind of options does a person have here, if we now would fail to come to an agreement? Since the security deposit is for $6K, does it fall under a small claims court or something like that?

I didn't want to stop paying the rent as that might put the landlady in difficulties (judging from that she may already have been behind in payments) and that's not what I am after. On another hand I did not really want to lose that money either.

Any tips about my options would be appreciated.

cheers

[QRM]

Our rental unit was sold midway through our tenancy. We just received a letter from the buyers lawyers informing us that the deposit has been transferred to the new owners and that we have to pay rent to his company. The only bummer is that the new landlord wants to move into this unit, so will not be extending the lease, we are moving when the lease expires, I will see if we get the deposit back.

[StockAnswer]

We just received a letter from the buyers lawyers informing us that the deposit has been transferred to the new owners and that we have to pay rent to his company.

I was wondering if that would be possible, so good to know. Thanks QRM.

[nycmom]

If landlord will sell the apartment, you will be continuing paying the rent, but to the new owner. Nothing will change for you, unless as another person mentioned new owner decided to move in. More likely who ever will buy, will buy it as an investment property with a tenant in it already. If I were you I would worry as much. But for your "peace" I would ask your agent/landlord what exactly going on and if she planning to sell this unit with tenancy, so you have nothing to worry.