Posted by MattC on May 26, 2005 at 14:17:06:
I agree with JohnBoy. He signed an agreement and he needs to honor. Now, that’s not to say that he shouldn’t offer a small amount to buy the option back to see if they bite. He may find out that the tenant/buyers want to get out of it anyway and would be glad to take 20-40% of their option fee back to move on.
Looking to get out of Lease Option Contract… - Posted by Josh
Posted by Josh on May 18, 2005 at 19:52:53:
My partner has a property that he has entered into a lease option with his future buyers. The rental agreement is 6mo with the option to execute the purchase at 165k at the end of the term. He has been approached by other buyers with higher offers. Is there any way he can break his current lease option to take a better offer, or will the tennants have legal recourse to sue for specific performance of the contract.
Re: Looking to get out of Lease Option Contract… - Posted by JohnBoy
Posted by JohnBoy on May 22, 2005 at 15:32:14:
So what you’re saying is that your partner is not a person of their word and someone who can’t be trusted. With partners like that, who needs enemies!
He signed a contract. He is obligated to honor it. Period! Yes, he can be sued if does not perform on his end of the contract. He has to wait until the option expires. If his optionee does not exrecise the option before it expires then he can sell to someone else. Or like the other post said, he can try to buy the option back. But he can’t just refuse to sell now because he got a better offer.
Just curious, how much better is the other offer that he wants to sell out his current tenant/buyer?
Re: Looking to get out of Lease Option Contract… - Posted by Rich[FL]
Posted by Rich[FL] on May 19, 2005 at 12:11:21:
It looks like he signed a legally binding contract. There is one way to get out of it (actually two ways); one is the buyer doesn’t excercise their option. The other way is for him to buy the option back, if the buyers are willing.
Where I’m at in a resort community which has lately been “discovered” by developers and speculators, I’ve seen a DRAMATIC rise in suits for specific performance where the sellers decide they want more for their property than they originally contracted for and tried to back out of the contract. The property values around here are rising that fast.
Your partner may just have to “bit the bullet” and learn from this experience.
Good luck!
Rich