Legal Question in Real Estate Law in Maryland
Vacation Rental Agreement Canceled By Owner
We had a vacation rental booked for October (we booked, signed the rental agreement and paid in full in April). We recently received an email from the owner saying that they were going to be selling the cabin and they have canceled our reservation and told that we can rent from the new owner at a higher price. The rental agreement we signed says nothing about this. It only says that we were unable to cancel. Are they allowed to do this and if they were planning to sell when the agreement was signed, were they obligated to disclose this information? I have a sneaky suspicion that the cabin rental was offered at such low rates to fill occupancy to up resell value. Now, it turns out that we've been paying credit card interest on a vacation that we will be unable to take. Any assistance would be greatly appreciated.
1 Answer from Attorneys
Re: Vacation Rental Agreement Canceled By Owner
You have a binding contract with the owner and have fulfilled your payment obligation. If there was, as you say, no contract provision making it voidable upon sale of the property, I think you have a valid claim for damages against the owner. For example, if you have to pay more to rent the property, you could sue him in small claims court for the extra cost. Practically speaking, though, this may not be feasible. You should write a letter to the new owners and/or the realtor, if one was involved in the booking, demanding that they honor your contract or you'll take legal action.