Withholding Mortgage Payment on Seller Carry Loan.

[Michael Suaves]

California.

Hello, I recently bought a nearly vacant(9 of 10 units vacant), multi-unit, office building. The seller carried back the loan. The Seller, according ot the contract, was supposed to do certain things by close of escrow: 1) remove all items left from the evicted tenant and 2) remove all other items left behind from previous tenants. We were assured they were removed, and escrow closed. however, afterwards we realized the items weren't removed. 40 days later, after emails, calls, texts, etc the items were removed. These items prevented me from leasing out the space as I needed to. I want to see if there is any way to make an argument that I do not need to pay my first month's payment to the Seller.

Also, he had owned the building for 10 years, and all of a sudden the next month after close the one tenant who had supposedly been paying rent gives 30 day notice to vacate. It seems strange, is there anything I can do on this as well, perhaps it can add to my argument about not paying the first month's payment to the Seller? It's highly likely he knew that the tenant was leaving or the tenant was never paying rent. Any advice is appreciated.

 

[Zigner]

No, those are not reasons to skip the first payment. Why did you close when you knew (or, should reasonably have known) that certain things weren't done?

 

[STEPHAN]

1. You should have made sure that the stuff was moved, not just assumed it. No reason to withhold rent.

2. You should have talked to the tenants or made long term contract with them if you were depending on them. Is it possible that the tenant delayed his decision to move out till after the closing? Sure, but that is totally okay.

 

[Zigner]

No reason to withhold rent.

Just a clarification: The OP wants to withhold a mortgage payment, not rent.

 

[STEPHAN]

Just a clarification: The OP wants to withhold a mortgage payment, not rent.

Sorry, typo. Sure I meant mortage.