Closing-Day Check for Lease Agreement Records
A lease-record check on the title-transfer day is not a repeat of due diligence performed weeks earlier. Facts can change quickly: another rent payment may fall due, a notice may be served, an addendum may be signed, the occupant may change or a mediation file may open. The buyer therefore needs a short, dated closing-day recheck confirming that the assumptions behind the purchase decision remain true before final funds are released.
1. Confirm possession and the actual occupant that day
Verify who physically occupies the unit and whether the outcome matches the transaction promise: tenant remains or vacant possession. If vacancy is a closing condition, do not rely on an old message; obtain an inspection, handover record, keys and evidence of actual surrender. Article 310 means the new owner becomes a party to an existing lease when ownership transfers, making possession at the moment of title transfer material.
2. Reconfirm the controlling contract version
Ask expressly whether any addendum, renewal or side agreement has been signed since the last review. Match the latest version to the buyer’s file, especially rent, deposit, term and bank details. A new document appearing at closing should not be accepted without enough time to understand its legal and financial effect.
3. Bring the payment ledger current
Enter the latest amount due and the latest payment, then calculate the balance as of the title date. Article 313 places rent payment on the tenant and Article 315 governs default in rent or due ancillary expenses. Any rent covering time before and after the sale should be allocated clearly between seller and buyer rather than left for an undocumented later adjustment.
4. Reconcile the security deposit
Confirm the amount, custody and responsibility after sale. Article 342 contains special rules for security in residential and roofed workplace leases. If the seller is transferring money or documentation to the buyer, record it in the closing settlement; if the security remains in a banking mechanism, document what the new owner needs to administer it later.
5. Check for any new notice or dispute
Ask whether a new notice has been sent or received and whether mediation, litigation or enforcement has started. Obtain the file number, current stage and next deadline. Rental disputes within Article 18/B of the Mediation Law have generally required mandatory pre-litigation mediation since 1 September 2023, subject to the statutory exception for eviction through non-judgment enforcement. A procedural change shortly before title transfer can change the buyer’s risk.
6. Do not accept “the term expired” as proof that the lease ended
If a party says the lease has ended because the written term expired, verify the legal basis. Article 347 contains special continuation and termination rules for residential and roofed workplace leases, while Article 348 requires termination notice in writing. Any reliance on new-owner need or an evacuation undertaking should be tested against Articles 351 and 352 rather than an oral statement.
7. Finalise the tenant’s new payment instructions
If rent will be paid to the buyer after title transfer, prepare clear, dated payment instructions. Avoid a last-minute account change delivered through an unverifiable message. Record the contact person, effective date and proof that the tenant was informed.
8. Sign a written financial settlement
Put on one page: prepaid rent, arrears, each party’s share through the transfer date, deposit, ancillary expenses, apartment dues or utility balances relevant to the lease, and any agreed allocation of dispute-related costs. The buyer’s first month should not begin with uncertainty over who owns or owes which amount.
9. Take possession of the records, not a promise to send them later
The buyer should receive the lease, amendments, payment ledger, deposit record, notices, dispute files, relevant management correspondence and handover documents at closing. If a material item is unavailable, list it as an exception, name the responsible person, set a deadline and state the consequence if it is not delivered.
10. Record the closing-day conclusion
Finish with a dated note: “no change,” “change identified and resolved,” or “condition remains open.” If the change affects possession, income or the reliability of a decisive document, do not demote it to an administrative note after funds are released; return it to the closing decision.
Conclusion: The closing-day check protects against the time gap between due diligence and title registration. By rechecking possession, contract version, payments, deposit, notices, disputes and settlement on the same day, the buyer acquires not only the property but also a lease file that can be managed from day one.