Collected Rents Clause Samples
The 'Collected Rents' clause defines how rental payments received from tenants are handled, typically in the context of a property sale or transfer. It specifies which party—buyer or seller—is entitled to rents collected before and after the closing date, and may outline procedures for prorating or transferring these funds. This clause ensures a clear allocation of rental income, preventing disputes over rent ownership during the transition of property ownership.
Collected Rents. All collected net rent and other collected income under the Lease shall be prorated as of the Closing. Seller shall be charged with any rent and other income collected by Seller before Closing but applicable to any period of time after Closing. Uncollected rent and other income shall not be prorated. Purchaser shall apply rent and other income from Tenant that is collected by Purchaser after the Closing unless the Tenant properly identifies the payment as being for a specific item, in the following order: (i) first, to Purchaser in payment of the current rent due under the Lease, (ii) second, to Purchaser in payment of delinquent rent due under the Lease for the period from and after the Closing, and (iii) third, to Seller in payment of rent coming due and payable prior to the Closing. Any prepaid rents for the period following the Closing Date shall be paid over by Seller to Purchaser. Purchaser will make reasonable efforts, without suit, to collect any rents relating to the period before Closing by continuing to ▇▇▇▇ the Tenant for such unpaid rents. After six (6) months from the Closing Date, to the extent Purchaser has not paid to Seller unpaid rents owing to Seller for periods prior to the Closing Date, Seller shall have the right to ▇▇▇ Tenant for delinquent rent so long as Seller does not cause a termination of the Lease. Seller acknowledges and agrees that in the event Seller receives any rents and/or other charges payable by the Tenant to the landlord under the Lease applicable to the period after the Closing Date, Seller swill promptly remit all such amounts to Purchaser.
Collected Rents. All collected net rent (excluding Operating Expense Pass-Throughs) and other collected income under the Leases shall be prorated as of Settlement. Seller shall be charged with any rent and other income collected before Settlement but applicable to any period of time after Settlement. Uncollected rent and other income shall not be prorated. Purchaser shall apply rent and other income from Tenants that are collected by Purchaser after Settlement in the following order: (i) first, to Purchaser's reasonable third party costs of collection incurred with respect to such Tenant, (ii) second, to Purchaser in payment of the current rent due under such Lease, (iii) third, to Purchaser in payment of delinquent rent due under such Leases for the period from and after Settlement, and (iv) fourth, to Seller in payment of rent coming due and payable prior to Settlement. Any prepaid rents for the period on or following the Settlement Date shall be paid over by Seller to Purchaser. Purchaser will make commercially reasonable efforts, without suit, to collect any rents relating to the period before Settlement. Seller shall not have the right to ▇▇▇ delinquent Tenants for delinquent rent after Settlement.
Collected Rents. All rents collected by Seller under the Leases in effect on the Closing Date and other charges paid by tenants (“Collected Rents”) shall be pro-rated as of the Closing by charging Seller and crediting Purchaser for any Collected Rents applicable to periods after the Closing.
Collected Rents. All collected rent and other income (and any applicable state or local tax on rent) under Leases in effect on the Closing Date or otherwise related to the Property. Buyer shall receive a credit for any rentals, including without limitation, reimbursable utility bills for utility charges incurred by Seller and reimbursable to Seller from the tenants under the Leases, collected by Seller before Closing but applicable to any period of time after Closing. If Buyer collects rents for the month of Closing or delinquencies after Closing, Buyer shall first apply such rent to the month of Closing, and thereafter to obligations due and payable to Buyer for its period of ownership and to reasonable costs of collection, promptly remitting the balance, if any, to Seller. Notwithstanding the foregoing, Buyer shall not be obligated to collect any delinquencies or to institute any lawsuit or other collection procedures to collect delinquent rents, and Seller shall have no right to pursue tenants in occupancy after Closing, provided that Seller shall have the sole right to collect rents, if any, which are unpaid or delinquent as of Closing, from tenants who are no longer in occupancy as of the Closing