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A friend plans to rent townhome from owner who is walking away from mortage in minn.. Will he have any liabilities?

Minneapolis, MN |

The owner plans to collect rent from friend until foreclosure process is completed in 6 to 12 months. What if any liabilities will he have for association dues, utilities etc.? Can bank come after him for anything? He will just move out when foreclosure happens. Other than moving expenses are their any other risks?

Attorney Answers 3

Posted

Only the legal title holder has exposure to these debts. A tenant is not responsible for any of these items, unless he signs a lease that calls for the tenant to be so responsible. So any lease needs to be looked at carefully before the tenant signs it.

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Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is sjfpc@comcast.net , his website is www.sjfpc.com. and his blog is

LEGAL DISCLAIMER Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery Counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is sjfpc@comcast.net , his website is www.sjfpc.com. and his blog is <http://frommtaxes.wordpress.com/> Mr. Fromm is ethically required to state that the response herein is not legal advice and does not create an attorney/ client relationship. Also, there are no recognized legal specialties under Pennsylvania law. Any references to a trust, estate or tax lawyer refer only to the fact that Mr. Fromm limits his practice to these areas of the law. These responses are only in the form of legal education and are intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received. By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction, who is familiar with your specific facts and all of the circumstances and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question. Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency.

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Posted

The tenant will have no responsibility for the debts and obligations of the townhome owner. As far as utilities go, that is a contractual arrangement between the homeowner and renter. Some rental agreements include utilities, but most do not and the renter will be responsible if they want the service.

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Posted

One other risk not mentioned by other attorneys who have answered is that there is a chance the bank could pursue an eviction to reestablish their ownership of the property. There is a small risk that the tenant could be named as a defendant to the action, which is part of a public record that could show up on future background checks, making it more difficult to rent in the future.

The information provided herein is for informational purposes only and is not intended to create an attorney-client relationship or provide legal advice.

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