Legal Question in Real Estate Law in California
Broken Lease
Hello,
I have just learned that a tennant whom I had a lease/option with a home I own in Fresno, CA will not be excercising his option to purchase as he could not qualify for a loan. Our agreement is that he leases through July 1, 2001 (about 4 months from now). He told me three days ago that he has rented a smaller home and will be leaving in 5 days. When he called me and told me this, he said that he wouldn't be paying this month's rent. I then arranged a meeting to inspect the home and quite frankly, it is a mess and will take thousands of dollars to make neccessary repairs to put it back on the market. Another thing was that I was approached by his real estate agent who put this deal together and he said that his client (the tennant) could get ''B'' paper (loan) right now but wanted to wait another year so he could qualify for ''A'' paper. Because of this last minute notification, I am left in a financial bind.
Can you tell me what my legal rights are? And, do I have any recourse with his real estate agent and his broker?
Thank You, Ron McGee
1 Answer from Attorneys
Re: Broken Lease
Is the lease/option agreement in writing? If not, you have a pretty good defense against any attempt by the "optionee" to hold you to the "option."
More likely, it is in writing. If so, there is probably some language indicating when and how the option is to be exercised. It would be somewhat unusual for the option to be valid after the lease expires.
Why would you have any recourse to the agent? I can't see that the agent has done anything wrong. It is your tenant who is responsible for the mess in the house and the (announced) breach of the lease.
The breach of the lease may be sufficient to void the entire instrument, including the option. However, the only way for a lawyer to advise you on this is to read the entire lease/option agreement and interview you in some detail about the circumstances of the breach.
Your best strategy depends on the market value of the property vs. the option price, the chances for recovering for the damages to the property, and several other factors that can't be evaluated without an interview and investigation. You should probably consult a real-estate attorney in Fresno County.
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