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Tenant improvement allowance disputes after a Denver handoff
Ngl, I closed on a small retail strip in Denver last March and the seller's broker swore the TI allowance was 'fully funded.' Then the new tenant's contractor sent me a $18k bill for build-out work the old owner had approved but never paid. Now I'm caught between honoring a handshake deal or sticking to the purchase agreement that says no hidden liabilities. Has anyone else taken over a property and found surprise TI commitments from the prior owner? How did you handle the tenant without torching the relationship?
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the_barbara16d ago
The handshake might not be binding, but the builder's lien rights probably are, so that $18k is already your problem either way. Get your title attorney to check if the old owner's approval was recorded, otherwise you're on the hook for a bad deal.
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