Posted by Al Pecherer on September 26, 2006 at 22:14:50:
Sounds to me like you had better offer your tenant enough incentive to move out willingly and on time to meet the end of your deal with the owner. Like maybe three months free rent and possibly pay their moving expenses. As you pointed out, your tenant allowed their option to lapse unexercised, and your owner allowed a sublet, so both were aware of the deal you set up.
You’ve learned a valuable lesson, and the screw-up was 1000% your fault. I’d suggest you act to preserve whatever profits you can salvage from your arrangement before a judge forces you to pay a YEAR’S rent for your tenant. Sounds like you made $1800 opt consideration and 36 x 150 rent spread = 5400 + 1800. If you can talk nice and offer your tenant $3000 or more cash to move out, that’s what I’d suggest.
HELP!!! Lease Option Gone Baddd!!! - Posted by Kevin (OK)
Posted by Kevin (OK) on September 22, 2006 at 24:12:19:
Thanks in advance for any help.
Signed up a L/O 3 years ago on a 3 year term. $1,800 option consideration & $600 per month. Found a tenant/buyer, signed him up on a two year L/O, $2000 down and $750 per month. Last year tenant/buyers term came due, he did not exercise his option, so I signed him on a strait lease agreement. I screwed up and left the two year term on the lease. So, the house goes back to the owner at the end of September (I’ve tried to get financing to buy the house but failed), and my tenant still has 1 year left on the lease. I am being threatened to be sued by both sides. The tenant is claiming fraud because he didn’t know that he was subletting, and the owner wants to sue if her house isn’t delivered to her by the end of September.
The tenant could sue for wrongful eviction (I sent him a courtesy letter, but do not plan on evicting him myself), which in Oklahoma is two months worth of rent or $1,500. The tenants option has expired, and it stated that I was Lease Optioning the property myself, so I don’t think he has a case concerning his option money.
I do not know what kind of case the owner has. She knew that I was subletting (it’s in the L/O agreement), so she is bound to fullfil the lease is she not? She was willing to sign this deal up for an 18 month extension with me on a CFD, but flaked out at the last minute. So this headache is partly her fault. Does she have a case of any kind? Any suggestions?