Legal Question in Real Estate Law in Pennsylvania

Rental money collection.

Who is entitled to March's rental payment? I wrote an installment land contract for $61,500. 10% down. Based on 20 years with a balloon in five and interest of 9%. Monthly payments are $498. Closing was held on February 26, 1998. The possession was as of that date. Originally, the buyer had wanted a first payment date of March 15. The seller had said April 1. I had said great that will give the buyer a little more time to get another tenant and have a reserve built up for the subsequent payments. We close. March rolls around and Stella (the tenant) pays her rent to the seller instead of the new buyer. The seller feels he is entitled to it because he won't have money coming in until April 1 from the new buyer. He figured he gave the buyer a free month so he should keep the rent not turn it over to the new buyer.


Asked on 3/11/98, 3:48 pm

1 Answer from Attorneys
Miriam Jacobson Retired from practice of law

Who is entitled to the rent after Installment Sale closing?

What did the Installment Sale agreement say about rent apportionment? Was there a HUD-1, that showed rents divided as of the date of the closing? Did the buyer and seller contemplate that the seller would continue to collect rents until payment in full? I would doubt it.

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Answered on 3/17/98, 5:32 pm


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