option to buy price

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GTGlitter

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What happens when you sign a lease with the option to buy and the house because of the economy will no longer appraise for the agreed upon amount? The tenant is now in default of the terms of the lease which now gives him the option to buy or vacate in 30 days. The tenant is only 6 months into the lease and the lease was originally for up to 3 years allowing tenant to buy at anytime before the 3 years with no penalty. At the time the lease was signed tenant was getting the house for roughly 10,000 under market value, as it did need some work. The agreed upon price was reached 3 months before tenant moved in. Will tenant have to come up with the difference to make the appraisal, will the landlord have to drop the price or will the whole lease just become void?
 
An OPTION is just what it says, and Option to buy. No one has to buy the property at that price. If the value of an asset drops below the option price generally options just expire worthless. Does that answer your question?
 
Gail, they are in default of so many things. I will list a few. They are denying landlord access to the house, everytime he comes to the property they call the police. Landlord was to live there for one year. In return tenant got a great price reduction on the home. They had been friends for over 20 years. Landlord was to be able to store property at property, tenant destroyed property. Tenant did work on home with no permits and no permission and lastly tenant is late on rent 6 times which lease states he has to either vacate or buy the home in 30 days. I know friends should never enter into agreements like this without a lawyer. What a mistake!
 
Gail, thank you again for your help, it's appreciated. That website is great! I will start the eviction process.
 
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