Legal Question in Real Estate Law in California

Re: Real Estate / Lease to Own Contract

Without actually reading both your lease-option and the loan agreement, I cannot be 100% certain.

Having said that, I'd say it is very likely your lease-option with the owner would not be adversely affected by the owner's deal with her lender.

The main thing that would concern me is that someone who is deceitful enough to try this kind of thing on a lender (it is probably fraud) is someone you must mistrust. I'd have a local lawyer look at your lease-option to see if it is valid and to advise you on how to exercise it should you decide to do so.

Re: Real Estate / Lease to Own Contract

I cannot answer without viewing the actual contract, although the chances are strong that you will not be affected negatively.

I would be very careful about future dealing with your seller, since, in effect, you are closer to a renter than a buyer.

I would certainly have an attorney review the paperwork.

Re: Real Estate / Lease to Own Contract

Both Mr. Whipple and Bennett are correct except that what your seller has done is not that unusal. Basically, she is sub=leasing the property to you without tellig the Bank. That type of thing is done all the time and rarely results in any negative result. But you do need to be cautious since it really is not honest. At this point, you do not appear to be an owner; you are a renter who has the right to become the owner at a future time if certain conditions are fulfilled.