Legal Question in Real Estate Law in California
Selling a home with Renters
I sold my home that had a current renter. The buyer knew there was a renter and agreed to purchase it with the renter there. Escrow closed 04/30/03. The renters moved out 05/18/03. Escrow instructions included that I would collect rent for the new buyer and agreed to pay to vacate the renters if they did not leave. I collected rent and turned it over and they left on time. Our final walkthrough with the buyer was on 04/29/03 and 4 items were indicated that I would fix if not fixed prior to renters vacating which I did. The new owner (buyer) is now telling me I owe her $1,200 worth of cleaning and repairs from the Renters. Do I owe her?
1 Answer from Attorneys
Re: Selling a home with Renters
You don't say whether there was a security deposit or, if there were, how it was handled. There are two legal means: (1) seller refunds to tenant prior to closing, and new owner collects new deposit. (2) Seller turns deposit over to new owner and notifies tenant. This could have an effect on the liability issues.
Therefore, I will answer as though there were no security deposit.
I think you have a pretty good defense against the buyer's claim. They had an opportunity to inspect. They took four exceptions to the condition of the place, and you rectified the problems. All in all, I would say you handled your obligations and the buyer has no really legitimate claim against you.
Thus does not mean they won't take you to small claims court; I'm only saying you have a decent chance to win. If you mishandled a security deposit or failed to disclose any conditions known to you or suspected by you the answer might be otherwise.
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