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Buying an Apartment Building? Here’s How to Protect Yourself from Delinquent Rent.

Depending on how an agreement is structured, both the buyer and seller are at risk for material hardship, says DLA Piper’s Mark Yura.

Multifamily investments sales are down during the pandemic but they haven’t stopped completely. Properties are still being listed for sale, while others are transacting in the off-market. 

Either way buyers need to protect themselves from a risk that has heightened considerably during the pandemic: a significant level of delinquent rents at closing. In particular, buyers need to establish the responsibilities of the seller and purchaser in collecting such rent and the allocation between them when this rent is collected after the closing.

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Erika Morphy

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