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I’m not a lawyer but my understanding is that you only need the promise of a payment to make a contract enforceable. A lease is a contract so if you both sign and it turns out that the check is fraudulent or in some other way money that you won’t actually receive, I would be concerned that you will find yourself chasing after a payment from a deadbeat tenant, then hiring an attorney to handle an eviction.
What if the third party has no knowledge of the lessee's contract and thinks he is giving money for a completely different purpose (for example, in exchange for promised goods or services?).
Why take the risk of accepting a draft from a third part who you know nothing about? It just introduces an element of uncertainty that you as the landlord don't need to accept IMHO.
Im getting another opinion from someone else that I personally know that as long as the leasee signs the contract he can have whoever he wants to sign and issue me the bank draft and that that person does NOT have to acknowledge in writing why he made that bank draft, is this correct? or would a lawyer really know the answer? i just dont want to get scammed as we all know this happens so so often in this world.
That's probably true, but there's a difference between "They don't HAVE to acknowledge..." and what is wise to cover your own behind. The Lawyer would advise you on the difference between "Legal" and "This is what I recommend to protect your interests."
Look, I can sell you my house on a contract that I write on a bar napkin and you can pay me using a personal check. None of it is illegal.
But a lawyer would tell you "that's legal, but you should have a better contract than one that was written in the neon light of a St. Pauli Girl sign, and a wire transfer instead of that check."
Quote:
Originally Posted by mathjak107
Make sure your state allows prepayment ...
Don't commercial leases have different rules, generally less stringent?
. He agreed to pay 1 year in advance and gave us a back draft
Back drafts usually occur during a fire. I would ask why the person can't pay it themselves or why someone else is not paying for it and are they part of an LLC. When something seems fishy don't do it. where there is smoke there is fire
Wh
y wouldn't the person leasing simply get a check from the other party, deposit it into his/her account, THEN pay you with a check in THEIR name? That seems very simple and straightforward.
OP, why can't you just ask the person leasing to do THAT?
Quote:
Originally Posted by Ted Bear
Sounds sketchy at best.
What if the check is a fraud?
What if there is money laundering involved?
What if the third party has no knowledge of the lessee's contract and thinks he is giving money for a completely different purpose (for example, in exchange for promised goods or services?).
Why take the risk of accepting a draft from a third part who you know nothing about? It just introduces an element of uncertainty that you as the landlord don't need to accept IMHO.
Thanks for your replies!!! YES, this leasee would have nothing to lose and only to gain if the 3rd party were to give him the cheque for him to deposit it into his own account, then the leasee simply makes a bank draft IN HIS OWN NAME payable to our business. In fact if this leasee were to refuse to do it this way then that may mean he may be up to no good and may want to pull a fast one on us because there is no reason why this leasee would not want to when it takes NOTHING on his part to arrange it that way.
But things have changed, we've decided to run our business ourselves for the next few years, then if this or other leasee is (still) interested we will certainly add a term in the contract specifying that its required for the leasee to make all deposits and rental payments in his own name from his own account. If he doesn't want to sign it for that added term then thats a red flag and its better not to have a leasee who deals with 3rd parties whos name is not on the contract.
Quote:
Originally Posted by Ted Bear
Sounds sketchy at best.
What if the third party has no knowledge of the lessee's contract and thinks he is giving money for a completely different purpose (for example, in exchange for promised goods or services?).
Thats what I was most worried about. What if that 3rd party has no idea his $50 grand that he issued in his name (given to us by the leasee) for us to deposit is for the leasee renting our building, then the leasee runs off and the 3rd party sues us for whatever he can because he never signed an agreement of any kind with us as the leasors. This kind of business arrangement may even be a scam set up by the leasee and 3rd party to see what they can get away with. That is why if we rent in the coming years, surely one of the requirements will be the leasee must issue us payments or cheques in his own name and own bank account to be on the peace of mind safe side.
Last edited by domic; 06-25-2019 at 10:13 PM..
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