Owner Trying T Back Out... What Are My Options?
I currently have a house on option and have a young couple ready to move in... problem is.. current owner is now trying to tell me they want their money up front and want to sell outright... I only have the Residential Lease w/ Option to Purchase agreement contract and Memorandum of Option, but nothing is notarized. Do I have any options to back me on filing a law suit if I have to?
Any help would be greatly appreciated and thanks in advance!!
pej:
Do you mean nothing is "recorded" or nothing is "notarized"? Notarized means someone signs that they witnessed you sign the contract. Recording with the proper locality is a different thing: it usually establishes legal claim or interest in a property. A signed contract is defendable, even if it is not "recorded" anywhere (and would be stronger if it was notarized).
That being said, my guess is that you have to go back to your contract: what rights does it grant you and the seller? If this is a Lease w/Option, it must have a lease term. If so, what are your rights as a "tenant"? Can the seller just kick you out with no notice prior to the end of the term? Does the Option part say the seller MUST accept your right to purchase?
I would take this to an attorney for an opinion.
Andy[ Edited by arytkatz on Date 08/24/2004 ]
This question is definatly an attorney question. If you used good forms, you do have rights to the property and can likely sue for performance of your agreement.
The sellers could claim that they signed the document in duress and the judge might void the agreement--especially if you purchased far below market value.
This isn't something that I can give you a good answer on. Please seek the advise of a competent attorney.
GOOD LUCK
Thanks all. I actually offered the HO 15% above FMV for the property and they still want to try to get out. I will locate a lawyer in the STL area and consult as to what my options are. Again, Thanks for the advice. God Bless!
How do plan on making any money if you are paying that much over market value. I would think you would be glad to let this one go.
Is your Lease and Option in one Agreement? Yes
Did you pay a security deposit? No
Did you pay any Option Consideration? No
My company is sub letting the property and we did not file a memorandum. MO has different requirements for filing documents. The memorandum has to be notarized in order for it to be considered legal. But, the contract we have should suffice. Also, I got a hand written fax from the HO lastnight, in their words... Terminating the lease with us. And they conveniently had a witness there in the house with them and the info they obtained according to them was from a Realtor friend. The Realtor informed them that I was only out for my own interests... LOL...And I suppose Realtors are not? Ok... Sorry bout htat one... I am seeking a competent Lawyer... to assist me in this.
Thanks for all the advice.
Quote:
On 2004-08-25 00:01, LeaseOptionKing wrote:
Record that Memorandum ASAP (if you haven't already). In the very least, you can make it difficult for the Seller to sell to anyone else. Force the Seller to take you to court (or settle). Also force the Seller to evict, and claim "equitable interest" at the eviction proceedings (if your Contract will not hinder it). Did you use your Contracts, or did you use Contracts provided by the Seller? I doubt the Seller would have given you a Memorandum, so I'm guessing these are your Contracts. Is your Lease and Option in one Agreement? Did you pay a security deposit? Did you pay any Option Consideration?
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"A deal is only as good as the quality of your Contracts." --Me
<font size=-1>[ Edited by LeaseOptionKing on Date 08/25/2004 ]</font>
dirtman,
You obviously have quite a bit to learn about L/O... But there is plenty of money to be made like this... You have to know how to negotiate the final sale of the property.... Remeber, you are speculating 3 - 5 years out, not the price of the house now... Hope this helps you understand how this works.
And FYI, My profit would have been a little more than 30K.
Quote:
On 2004-08-24 22:19, dirtman89 wrote:
How do plan on making any money if you are paying that much over market value. I would think you would be glad to let this one go.
Yes, it has to be notarized (anything that gets recorded must), but you can notarize your signature if using a new Memorandum. I don't use a Memorandum of Option, since it requires the Seller's signature. Fill out a Memorandum and Affidavit. Only your signature is required, and the result is the same.
Lease Option King,
Good to meet you. Would you explain the difference in Mem Of Option and the Mem. and option that you use to file. Thanks for all the great posts!!
Td
The difference is you do not need the Seller's permission or signature (as long as you have a Contract to back you up). I use an Affidavit, which is my sworn statement that I have a Contract or Option on the property. It's not 100 percent infallible, but it will normally suffice to cloud the title. I also include a strong warning in it to anyone who may be looking at the title (lenders and purchasers) that they may proceed at their own financial peril.