Posted by John on February 06, 2006 at 07:06:19:
I am not an attorney.
It would seem like he could not deliver a clear title to you. The only way I can see is if the tennant release the seller from the contract and converts to straight lease. Consult an attorney
Two Contracts - Posted by Frank Freman
Posted by Frank Freman on February 05, 2006 at 21:39:25:
Hi The seller has a tenant in the house with a rent to own contract that will end in 2009. He also sign a contract with me to buy the house for cash. What can I do?
Re: 2 K’s & T’s prior rights - Posted by John Merchant
Posted by John Merchant on February 06, 2006 at 08:33:41:
The Tenant’s K, if valid (in writing, clear, unequivocal, signed, etc.) and if prior to yours, is clearly dominant and gives the T the right to buy the RE at the price and on the terms therein stated.
Bringing up the point of why you thought you were buying with this T and his K in place…?
You either knew the T was there, with prior rights…or you didn’t.
If you knew you should have walked; If you didn’t, that brings up issues of why not, etc.
First thing to do is get and read the T’s K and see if it is good and valid, etc.
I got a call on a deal like this, from the Seller who knew he was in default on HIS loan with his lender, and who had sold the SFR on a L/O to his T…but who was about to be foreclosed upon.
I met and talked to the T and liked the SFR, but could do nothing, and had to just stand by and watch while the SFR did get foreclosed upon and the T evicted.
That T sure had grounds for a suit against his S because of their likely fraud in taking his money but not delivering as promised, but sure nothing I could do but wish them well and walk.