Honoring an expired Lease Option - Posted by DALLAS

import · April 12, 2005, 9:30pm

Posted by Rob Ricker on April 17, 2005 at 21:45:37:

If the option is a seperate contract from the lease, then I’m afraid it sounds like THAT contract has expired. IMO, the only way your argument is valid is IF the lease & option is part of ONE contract (i.e. Lease Purchase) - Disclaimer - I’m not an attorney and this is only my lay opinion.

import · April 12, 2005, 9:30pm

Posted by DALLAS on April 12, 2005 at 21:30:06:

This may be a bit long but I?ll stick to the points, as best I can.
I am a mortgage broker and have a client who is buying a home that was contracted under a lease with option to buy some 18 months ago. Approx. 6 months ago a conventional contract was put in place at a higher price. My clients claim that they did not sign the new contract which has also expired.

Although it does not matter, I tend to agree with them because they have not lied to me on any issue that I have investigated. I was not involved in any of the old contracts and have secured a new loan for them. The seller is not contending (at the advise of his agent and his own personal greed) that a new offer has to be made as there is no contract in place. I disagree for the following reasons and seek another point of view, one way or the other??.

The buyers have established equitable interest in the property because the continue to make payments under the terms of the contract that was in place
The seller continues to accept those payments and demands that they make them.
Having a contract that is at best, disputed I am of the opinion that the original contract is still valid because the seller continues to make references to sell and demands payments. Most important of all, he has never placed a rental contract in front of them nor has he done or said anything that infers a landlord/tenant relationship.
He continues to speak in terms of selling BUT?.. infers that he wants more $$$.

I’d like to know if it is possible to force him to homor the contract & price, even if it went to court. The property is in TN.
Please advise.

import · April 13, 2005, 8:44pm

Re: Honoring an expired Lease Option - Posted by Tom-FL

Posted by Tom-FL on April 13, 2005 at 20:44:53:

When a lease expires, in most places you wind up in a month-to-month tenancy at will.

import · April 14, 2005, 10:50am

Re: Honoring an expired Lease Option - Posted by Dallas Allbritton

Posted by Dallas Allbritton on April 14, 2005 at 10:50:40:

I’d agree with you Tom, if this were a simple lease but it is a lease w/an option to buy. The buyer has continued to state that he wants to buy and action has been taken to get a loan. Add to that, the seller continues (demands) housing payments.

I got the seller to see the light, finally which provides me with the time needed to close the loan.

Thanks for your input, most appreciated