Need Suggestions for Backing Out of L/O Contract, Please…(long) - Posted by Tim Randle
Posted by Tim Randle on December 16, 1999 at 17:08:12:
I won’t give all the gory details, but here’s the meat. I have an L/O agreement with a seller and have been trying to sell, lease option, or just lease this place for months. I gave myself 8 weeks before my payments started and don’t fully understand why I’ve been unable to at least rent the place.
I finally found someone very interested in purchasing with enough margin for me to recover my costs and just get out. Turns out the prospective buyer has a friend in the complex and one thing leads to another and, lo and behold, the entire complex has serious foundation problems and past repairs. Engineer letters make it pretty clear foundation movement will continue and that I will never be able to sell this place.
Owner faxed me a copy of her seller disclosure from her previous attempts to sell this summer. After reading, I respond that I never would have made this agreement had I been aware of this problem - the deal wasn’t that great, anyway. Owner has been very upfront with me and I don’t think this omission was intentional - I had asked about repairs, etc. at our initial meeting. She never offered this disclosure and I never asked for it.
Counting prior payments, ads, and minor repairs, I’m now into the property for about $2,500. So, here’s my questions:
Should I just cut my losses and tell the owner I will not make any more payments?
Should I leave my affidavit of agreement recorded and hope that someday the property sells and I can recover my costs?
Does that lack of disclosure allow me to break my contract with the owner? (I used a slightly modified LeGrand contract, and can not find any clause that would address this other than “Breach by T/B”)
Suggestions are very appreciated as I would like to have this conversation (and whatever written confirmations are necessary) done by this weekend. Thanks…