Legal Question in Real Estate Law in Massachusetts

Re: tenant

Without seeing you P&S, it is hard to know exactly how to advise you. However in general the proration of rent is based upon the period the rent paid covers. In other words if your Tenant paid rent through 1/31/04, then you owe the new owners for the additional two days regardless of when your tenant vacated the premises. If however the rent only covers through 1/29/04 then subject to any other conditions in the Purchase and Sale agreement, then no you do not owe them rent.

There is the issue of security deposits. Check with the closing attorney and/or Seller's attorney as to how this is to be handled. you do not want to release the security deposit without the consent of the Buyer, because any damages may be claimed by the Buyer against you.

I hope this was helpful.

Re: tenant

Hi -

Typically, the new owners (buyers of your property) would only receive prorated rents which you received from tenants remaining after the new owners take possession. The new owners could take a hard line at the closing and ask you for the two days; if I were representing you in the transaction I would take the position that the new owners are taking possession of the property free of any tenants and thus are not entitled to any share of past rents.

Consult with your realtor if this issue is raised at the closing - I think that you're in the clear though.

Good luck at your closing.

Regards -

Len Foy / Gould & Gould / Tel: (603) 434-3437