Am I Locked In To This L/O?
To make a long story short, I don't want to sell a house I own to the current tenant that is leasing with a purchase option. We just used a standard form from Office Max. (first mistake - Boy have I learned my lesson) He has been an awful tenant and is pure evil. Am I obligated to sell him the house at the end of the lease, or is it really an "option". This is my first L/O, if you can't tell. Any input would help.
It would depend on the actual wording of the contract, but if it is a Lease-Option, then you are obligated to sell them the property IF they choose to exercise their option to buy the property.
If he has been an awful tenant, has he actually violated any of the lease agreement? If so, then the contract should clearly state your options in removing him/them and how the option fee would be handled in this situation.
Roger
Because the initial L/O was so weak (my fault), he really hasn't broken any part of the lease that I could evict him over. He has been very careful of that. He really does want to buy the house, but for personal reasons I was hoping I could just wait out the lease and tell him I'm not selling him the house. I guess I'll chalk this up to one of those valuable lessons I have to learn the hard way. Thanks for your response.
Is there a particular reason why you don't want to sell the property anymore?
If it's just because he's been a bad tenant, don't let personal feelings get in the way of a money-making business deal.
Roger
That's how I see it. If they guy is a pain in the butt just sell him the house, make your money and be done with it. Lesson learned, move on to the next deal. At least this way if you sell it to him you don't have to hear him whine and complain because you told him he couldn't have it.
Just my two cents.
Mitchell
Strukes,
I was in Rosemount today actually. I sent you a private message, I know you are new here so you might not know that you can recieve them,
I might have a few ideas for you. They all really center around giving the tenant-buyer a fair incentive not to purchase. Since we really don't know the specifics of your deal that would be a hard thing to figure out but shouldn't be something too difficult if you really do want to keep your property.
Actually I just read your first post, you had in another thread, if that is the situation it might be a little tougher sell.[ Edited by scott_mn on Date 01/26/2004 ]