Posted by Sean on June 19, 2006 at 11:27:21:
It doesn’t need to say she can take it back… you are leasing… you are in default, she can terminate the lease/evict you as tenant.
It is then up to her as to what she will do with the tenants you have subleased to.
You have to pay to play… that’s the real world.
lease option - Posted by Sharon
Posted by Sharon on June 19, 2006 at 09:22:38:
I need some help with a lease purchase contract that I have. If you are experienced with lease purchase contracts please let me know how I can discuss my situation with you. Thanks Sharon
Re: lease option - Posted by DP (ON)
Posted by DP (ON) on June 19, 2006 at 20:40:43:
The reality is that you should not be in a sandwich lease option without some cash reserves for exactly this situation.
You should either bring in a partner who can make the payments on time in exchange for half of the cash flow and backend. Or you should assign your option to the buyer or back to the seller and get out from the middle of this deal.
Then you should do a couple of cooperative assignments and keep the cash in reserve so that you can handle sandwich deals.
Re: lease option - Posted by Jim FL
Posted by Jim FL on June 19, 2006 at 09:28:15:
Since their are probably hundreds of folks who read here that might know a thing or two about lease options, in this public forum, why not post your questions here.
This way you’ll get info/input from multiple sources.
So, shoot, ask away, fire away, drop the question and we’ll see if we can help.
Take care,
Jim FL
Re: lease option - Posted by Sharon
Posted by Sharon on June 19, 2006 at 09:46:54:
I have a lease option contract with an out of town owner. I have a had a few payments to her that have been late due to my tenant buyer not paying on time and my being laid off and not having the funds to front the rent for my tenant buyer. However whenever the rent has been late I have always paid the late fees. The owner left me a message threatening me to take the house back, and my tenant buyer if the rent is ever late again. My question is can the owner contact my tenant buyer and take her from me just like that?
Thanks so much,
Sharon
Re: lease option - Posted by sharon
Posted by sharon on June 19, 2006 at 09:33:02:
I’m sorry Jim, post it where?
Re: lease option - Posted by Jim FL
Posted by Jim FL on June 19, 2006 at 11:52:21:
Sharon,
Some harsh reality, but, reality it is.
When you are late, even though you pay late fees, the owner of the property has the right to take action to insure timely payment, etc.
Now, whether they are correct in the claim or not, is to be determined in court, usually with an eviction.
Should the owner of the house decide to serve their tenant (you), they would also need to serve the tenant occupying their house, as well, with anything they’d serve you.
I’m sure an attorney would advise them to do this.
Can the seller mess up your relationship with your sub-T/B’er?
Sure.
Would it be right?
Depends…if you are paying on time and performing, the seller should have ZERO contact with the tenant buyer in the house.
But, when you don’t, the above would apply.
Your best strategy to deal with the issue, would be to talk to your seller, smooth things out, and let them know what is happening. Make it clear that you are doing what you can to perform, and this is why you’ve paid the late fees.
Perhaps also advise them that the end result which you both desire, is for the folks in the house to buy, so please come to you first, to resolve issues.
If that fails, then you cannot blame them for notifying the occupants and protecting their property.
Even if your agreement had a clause stating the seller could not contact the occupants, they’d probably win in court if they did so, in an effort to enforce an agreement with you.
Anyway, my two cents, keep the change,
Jim FL
P.S. Thanks for posting up, it’s better than private email, because then perhaps the discussion will help more than just one person.
Re: lease option - Posted by Anne_ND
Posted by Anne_ND on June 19, 2006 at 10:46:24:
Hi Sharon,
I think you need to make the payments to your owner on time even if you don’t get payments on time from your tenant/buyer.
If I were your seller I’d probably do the same thing, regardless of what the contract said. But, you should check the contract you have with your seller to determine what remedies she can use. You should also tell us what state you are in, as those laws differ by state.
good luck,
Anne
Re: lease option - Posted by Sharon
Posted by Sharon on June 19, 2006 at 10:54:20:
I’m in South Carolina.
I agree that it needs to be paid on time. I have no financial backing until I am either rehired or find another job. The contract doesn’t state that she can take the property back for late payments it only states that a late fee is paid after the 5th of the month, and I always pay the late fee.