TOPIC: How do you all handle unpaid invoices from vendors in the case of a change in ownership/management?

How do you all handle unpaid invoices from vendors in the case of a change in ownership/management? 1 month 2 weeks ago #53562

How do you all handle unpaid invoices from vendors in the case of a change in ownership/management? For example, if you signed an annual agreement for service at a property, and let's say in month 7 of the agreement, the property undergoes a change in owner/management, voiding the agreement, but is two months behind on payment. The plot twist, the asset has already been transferred so you no longer have access to its accounts. Is the new owner/manager paying the past due invoices on behalf of the property now that they have access? Or do you still pay them?

How do you all handle unpaid invoices from vendors in the case of a change in ownership/management? 1 month 2 weeks ago #53563

Depending on the State lien laws…File a notice to lien up front, then file a lien as soon as they are late.
  • Anonymous
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How do you all handle unpaid invoices from vendors in the case of a change in ownership/management? 1 month 2 weeks ago #53564

They still have to be paid.
  • LaToya Ray
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How do you all handle unpaid invoices from vendors in the case of a change in ownership/management? 1 month 2 weeks ago #53565

Typically there is an escrow account that covers things like this. New owner can request this amount out of escrow.
  • Jamie Renee Jennings
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How do you all handle unpaid invoices from vendors in the case of a change in ownership/management? 1 month 2 weeks ago #53566

the closing documents will indicate who handles the property liabilities to date.
  • Anonymous
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How do you all handle unpaid invoices from vendors in the case of a change in ownership/management? 1 month 2 weeks ago #53567

We went through this recently and the former owners continued to pay invoices that rolled in prior to the sale. I’m also still sending collections checks from former residents prior to the sale to the old owners.
  • Heather Hawpe
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How do you all handle unpaid invoices from vendors in the case of a change in ownership/management? 1 month 2 weeks ago #53568

Services were rendered under old ownership and bills incurred have to be paid
  • Hasmukh Shah
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How do you all handle unpaid invoices from vendors in the case of a change in ownership/management? 1 month 2 weeks ago #53569

I am going thru this now. Our company bought the 2 properties I manage in June. I still am fighting this out to get them in Vendor Shield with us. Those that did not get onboard with Vendor Shield in a timely manner were replaced. The aged invoices from the former owners time of ownership I emailed back to the vendor and CC’d the former company that these are not our obligation.
  • Doris Roberts
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How do you all handle unpaid invoices from vendors in the case of a change in ownership/management? 1 month 2 weeks ago #53570

Contracts are turned over to the buyer during their due diligence process. They agree to assume them or req to cancel, at which point you’ll need to send a termination notice to your vendor. Or if assumed, there should be a notice that you have in place to send letting them know of the sale/change in ownership and who they should send bills to new owner/buyer. However you need to check with the dept that handled the sale within your company to see what they agreed upon. There are also probably closing cr to buyer/seller in regards to taxes, ins, utilities, invoices, rents, etc.
  • Gris Elda
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How do you all handle unpaid invoices from vendors in the case of a change in ownership/management? 1 month 2 weeks ago #53571

I’m currently at a new property that my management company purchased about 2 months ago. Our biggest issue seemed to be getting info (insurance & w9) from the existing vendors so we could continue to use them. I’ve had a few invoices roll in that were for services prior to takeover and the previous management group has issued checks for them almost immediately. Thankfully it hasn’t been a huge problem!
  • Anonymous
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