Legal Question in Business Law in Kentucky

memo line of check

My mother is renting a house to a friend. The friend has showed interest in buying the house but my mother said she is not selling. Recently, the memo line on the rent checks she is sending my mother says Rent to Own. If my mother cashes these checks, does that obligate her to a Rent to Own contract? Can my mother just cross that out before cashing?


Asked on 6/12/08, 1:19 pm

2 Answers from Attorneys
Gregory Napier Troutman & Napier, PLLC

Re: memo line of check

The Kentucky Statute of Fraud, KRS 371.010, requires any contract for the transfer of real property to be in writing and signed by the person against whom the alleged contract is being enforced.

While it is very unlikely that a court would find that your mother's endorsment of the check to contstitute a signature on a contract, it would be safest to mark out or completely cover the memo to show no intent to contract exists.

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Answered on 6/12/08, 3:52 pm
Suzanne Van Wert Van Wert Brown

Re: memo line of check

Without getting into the nuts and bolts of contracts, I would suggest that marking out the words "Rent to Own" and initialing beside it would be an indication that there is no agreement to such a deal.

The terms of any lease agreement between your mother and a tenant should clearly indicate that there is no option to purchase the real estate. If that is not included in the contract, she may want to talk to an attorney about drafting future lease agreements.

This is not legal advice, but is merely for informational purposes. This response does not create an attorney-client relationship, and is not protected by the attorney-client privilege. If you have any questions or would like more information, please contact cousel of your choosing to discuss this matter in more detail.

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Answered on 6/12/08, 2:03 pm


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