Legal Question in Real Estate Law in California
Hello,
I am a California Real Estae Broker. My wife and I found a home to lease. The owner offered a Lease with option to Buy. I came over with the C.A.R. forms. He had forms from FormFinders.com
It was to be Contingent on our home inspection which was not written in the forms. We had the inspection and decided there was way to much work to be done. We decided we did not want to go forward. The Owner is trying to make us move in. Do we have to move in. The lease is for 3 years. We thought it was for 1 year then month to month.
Are we bound by this contract??
Thank you,
Sean Ballard
3 Answers from Attorneys
Forgive me if this sounds a little bit harsh, but I would assume that as a real estate broker you would know better than to sign a contract without reading and understanding it. Given the experience and education a broker is required to have, I would believe that you would know the difference between a one year and three year lease. I know as a real estate broker myself I never tell clients to sign a document they haven't read, or one that is not exactly what they intend for it to be. Mistakes like this can result in very, very serious consequences. Irrespective, you are where you are, and so now how to deal with it.
The lesson here is that if it's not in the contract, it's almost certainly not enforceable. You say it was to be a one-year lease, and contingent upon the move in inspection. The problem is, without that in the contract, there is no contingency for condition of the property, and it's going to have a three-year term. Even the crappy leases on FormFinders.com generally contain an integration clause which effectively says if it's not in the written lease, it's not part of the agreement and cannot be enforced.
Can the owner force you to move in - absolutely not. Can the landlord then sue you for breach of the contract and damages for your failure to move in - absolutely. Whether or not the landlord will win is a question of facts and the documents, but from the brief facts provided, this sounds like a case you are likely to lose. If the contract is fully executory, then the landlord has the right to sue you for unpaid rent until he can relet the property, for the cost of remarketing and rerenting the property, including commissions, etc... and any other damages reasonably related to your failure to abide by the agreement you signed. I would suggest reaching out and attempting to settle this with the landlord. Offer to market the property for him and find a replacement tenant; give up your commission as an offer of good faith. Do, however, document properly (hire an attorney) any agreement you reach, as you need to be able to prove in a court that he agreed to settle with you on the terms you reach. He is almost certainly going to keep any money you have already given him in satisfaction of the damages he has incurred. In short, yes you are probably bound by the contract.
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You are bound by whatever terms you agreed to in signing. While he can't force you to move in, he can sue you for breach of lease if he has grounds to do so. Read your contract. If you need to get legal help, feel free to contact me. It may be possible to put up a show of 'strength' and negotiate your way out of the mess you're in.
If it is a fully integrated contract, and you signed it, you can't introduce evidence of what you wanted to be in there, or should have been in there. A court is going to hold you to a higher standard when they find out you are a real estate broker.