Pitfalls Of Buying And Selling Tenanted Real Estate In Washington DC
Buying investment real estate is high on the agenda for a lot of people at present due in part to low prices on offer. Tenanted properties can be quite attractive. From day one your property is providing an income. If you are using credit sources to fund your purchase, the income can go a long way to satisfying that payment.
All states have legislation that make special provision for tenanted properties sales. For each state, you need to carefully check what is involved. In Washington DC, for example, tenants have the right to purchase the property under the same terms that you have ratified with a buyer.
The law is quite complex when dealing with tenanted real estate. In DC, the tenant must receive a copy of the contract within two days of it being ratified. They then have 15 days to make a decision on whether or not to purchase the property. This of course can slightly delay the final hand over of the property. This can be reduced if the tenant signs a waiver early.
What is important is to understand that while tenanted properties are attractive, there are pitfalls. Not only are there pitfalls, the law is complex and really does require the advice of an expert. If you are buying a tenanted property, find a real estate agent that can represent your interests.
For sellers of tenanted real estate, find a real estate agent that is familiar with laws related to tenanted properties. Once the contract has been ratified, check to see if the tenant has received a copy. Tenanted properties are attractive – just be sure the process runs smoothly.
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