Posted by John (OH) on June 12, 2000 at 18:02:14:
I have had similar experience with sandwhich lease options. Our county will not allow the “affidavit and memorandum …” to be filed. So I got seller to sign a Option to Purchase, notarized it and filed it, if things get off track. Then when they try to back out you have some protection. Good luck
HELP…fast…JPiper, Bill B. others… - Posted by Steve(NC)
Posted by Steve(NC) on June 12, 2000 at 17:49:27:
Ok…the wonderful world of gossip and rumors.
I signed up a lease option last weekend with the owner of a condo that was moving to a different state. I explained everything in detail to her about how I was going to do my side and sublease …higher sales price etc… SHe was fine with it and everything.
The night before she moved:
She gave me the keys to the property on sunday evening at around 6pm…at 7pm one of my tenant/buyers who was who had called on my ad earlier that day (and I explained the program to…$800 mo rent with portion credited…3-7% of sale price down etc…)…decided to drive by the condo.
Well the tenant/buyer asked the seller to see the condo…the seller said sure…the tenant/buyer said I like it and want it! So I pay you $800month and $3000 down for it with a sale price of $75,000. The seller flipped out…what…she didnt understand.
So she changed the locks to the door and left for a different state the next day. The seller then called the RE Commission and said how can he sell this if he dont own it…blah blah…they of course said I need a license (yeah right…I am Incorporated and did disclose that I wasnt a realtor or broker).
THe seller was upset and said I was telling people I “owned” the condo. Whenever someone asks me if I own the place (they never do…they just assume I do)…I tell them that my company controls it for the next x years. If they ask further…I do tell them that I have a signed lease purchase contract with the owner that allows me to sell, rent it for x years. That is it! End of story…they understand and everything is cool.
The seller said…well my brother and a few others called your ad…and you told them that it could be rented for $800 month and $3000 down and that you owned it. Again…Someone that I explained the ‘rent to own’ program to…who ASSUMED I was the owner.
I had to track the owner down in a different state…and when I called her…that is how I found out all of this.
She doesnt want to do the deal…but did sign that contract/waste my time/spend my advertising dollars…
And I do have a signed l-p contract. I know I could just put another in the loss column and just move on…but I am not going to be walked over again.
So what steps need to be taken? I havent record memorandum yet…should I? I know I am not going to be in this deal…but I feel I should be compensated for reliquishing my “contract” on this property. Do I have a fight here?
What price is reasonable here to ask? Is my contract valid? Can it be enforced?
Bill? JPiper? Others…
THanks for the help.
Steve (NC)
Re: HELP…fast…JPiper, Bill B. others… - Posted by Redline
Posted by Redline on June 12, 2000 at 20:02:53:
Is your contract valid? Sure. Is it enforcable? That’s another story. You really wanna go to court over this one to try specific performace? Save your time and money. Perhaps you could just cloud the title and sit tight. She’ll try to sell sooner or later and perhaps you can recoup some cash for your effort.
What I don’t understand was WHY you allowed your new buyer to have a conversation with your seller? That’s a big NO-NO as you found out. You should’ve been there to show the property AFTER she was out of town.
And I also don’t understand why you explained everything in detail to her (although it looks like it didn’t stick anyway) … this looks like a case of too much information to your buyer AND seller.
Just my opinions - but good luck with it. Let us know how it turns out. This is in no way meant to be negative, just pointing out some things that you may have done to “allow” this deal to go bad.
RL
Re: HELP…fast…JPiper, Bill B. others… - Posted by PBoone
Posted by PBoone on June 12, 2000 at 20:01:09:
Steve,
There are a couple of things you can do.
a-Go into the condo using a locksmith or other such sources, since you have a lease agreement then you have right to possession until the lessor evicts you by state statute.
b-get ahold of the person and ask them for your advertising costs back to save them the expense of eviction and walk away.
In my opinion it is better to walk than fight a losing battle when so little money is involved
Pat