Legal Question in Real Estate Law in Florida
Lease w/Purchase Option Rental Agreement
We signed a lease with purchase option with the intention of purchasing the property. A year and half later now, we have decided that we do not wish to exercise the purchase option, for a number of reasons (for example, research has led us to find that the house is over-priced for the neighborhood, plus needs tens of thousands of dollars in repairs). We have agreed with the landlord to break the lease (it was actually a 4-year agreement with purchase to take place at any time during the term and varying purchase prices based on timing), with just 30 days notice. Our lease a states a breakdown of our rental payments as x-amount is for rent and x-amount is credit towards purchase. It does not say anywhere what happens to that credit amount if we don't purchase. What claims/rights do we have towards it's return?
2 Answers from Attorneys
Re: Lease w/Purchase Option Rental Agreement
Read your contract carefully, it is rare that amounts credited to puchase price dont get treated as rental, upon failure to excercise option. The option money pays for the right to purchase. You own that option whether you purchase or not. Subject to the contract terms,why cant you resell it to a third party?
Re: Lease w/Purchase Option Rental Agreement
You should meet with an attorney to review the lease purchase option. Unfortunately, most options do not provide a refund of the monies earmarked for the purchase option if not exercised but each agreement is worded differently as there is no "standard" form that is used. The information you are seeking might be contained in the agreement but not in terms which you may understand. This is a serious legal issue which warrants the immediate attention of a skilled real estate attorney.
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