Legal Question in Real Estate Law in California

Re: Lease with option to purchase

First step is to sue owner. Contact me directly.

Re: Lease with option to purchase

You can negotiate with, or sue, the new owner/lender in charge to enforce the contract. They will want tenants, and may be willing to sell to you. You can also sue the defaulting party, but good luck though, they are likely insolvent, i.e. bankrupt. Hiring an experienced local attorney would be sensible.

Re: Lease with option to purchase

First, I think you need a more complete answer than you've received so far.

A lease with a purchase option is an instrument that can and should be recorded, provided it is in writing and notarized. Failing that, it may be possible to write up and record a memorandum of the lease and option. Recording documents serves as notice to the world of your prior legal interest in the property and helps prevent a "bona fide purchaser for value, without notice" from obtaining rights in the property that are superior to yours.

Next, I would be sure of getting any notice of default that a lender may record against the property by recording a "request for notice of default" that assures you have timely notice of foreclosure activity.

I would also consider taking some steps to make sure anyone making a drive-by or otherwise checking on the property knows you live there; in some instances a lender or buyer has a duty to inquire about the presence of someone who is apparently in possession of property and what their rights may be, as a possible owner, tenant or whatever. If they see your name on the mailbox, or your kids playing in the yard, or your car in the driveway, this may trigger a duty to make inquiry and thus deprive them of becoming a buyer without notice, even if your papers aren't recorded.

As to filing suit, this has some advantages, particularly if the suit can properly include some claims for which filing and recording a "lis pendens" is appropriate....but under the current state of affairs reflected in your question, it's not at all clear that you have standing to make claims warranting a lis pendens at this point - or for that matter, that what you call "absconding with payments" is ripe for suit at all, much less something for which a lis pendens may be used.

The date(s) or time frame during which the option may be exercised are a significant factor here, as is the method of exercise.

In sum, I think that getting your rights on record and placing yourself in a position to be kept informed is at least as important as filing suit at this point.

Finally, you might want to consider whether you can acquire the property more cheaply by some process other than exercising your option. Maybe you could bid at a foreclosure sale or otherwise become the owner by another route; or if you can locate the owner, cut a deal for a deed in lieu. Just a thought, not a recommendation.