Legal Question in Real Estate Law in California

Re: lease purchase agreement

Technically, a lease is for a specific period of time, like one year, three years, etc. Unless the lease makes your obligation contingent somehow, the lessor can seek to hold you to the obligation to make the lease payments for the entire period of time; note, however, the lessor/landlord has to try to lease to someone else during that period of time, and if he is able to do so, then must credit you with whatever lease payments he receives from a third party.

Re: lease purchase agreement

What Ms. Deming has said is right on the mark, but I would like to add a footnote. A lease-purchase agreement differs from a straight lease in that part of the money you paid up front may be an option fee rather than a lease deposit. You should look at the agreement carefully to see if it says $X is a non-refundable option fee and $5000 - $X goes toward the deposit, the first month's rent, etc.

Since you are entitled neither to a refund or a credit toward rent of any amount you paid for the option, when the landlord reckons up what you owe him, after mitigating his losses by re-renting ASAP, he can charge you for all lost rent he suffered, plus expenses of re-renting, and apply only the portion of the $5,000 that was not an opition fee to your side of the ledger. So, if after adding up both sides of the ledger, if you end up owing him, yup, he can sue and win.

Re: lease purchase agreement

One cannot tell without reviewing the contract documents. Have it reviewed by an attorney. It'll be worth the cost.