Posted by Natalie-VA on March 05, 2005 at 08:01:14:
Stacey,
I am not an attorney, but I interpret that to mean that the June money goes to you and you don’t have to pay the seller anything extra for it. I would look elsewhere in the contract to see if there’s any mention of prorated rents or something to that effect.
allocated rents on a seasonal rental property - Posted by Stacey
Posted by Stacey on March 03, 2005 at 10:34:30:
I am buying my first investment property which is seasonal. The property is open from Feb to Nov and rents are paid to the individual owners by the management in June and Oct of each year. Here is my question. The P&S reads like this: Collected rents and expenses shall not be added to or deducted from the purchase price at closing. (ok - fine) (this is the part that bothers me): The conveyane of said premises shall be deemed to include the Seller’s allocable share of any working capital or other reserve funds held by the organization of unit owners, without adjustment or payment of any additional consideration by the buyer.
Does this mean that the anual income is allocated over 12 months or that money collected by the management before the closing date has to be paid to the seller by me (the buyer) when I get my check in June?
Keep in mind - this is a summer rental. Most of the money is made on the unit after March 31st ( the closing date). Any input is greatly appreciated.
Thanks for your time,
first time investor,
Stacey