Legal Question in Real Estate Law in New York

Down payment paid in installments

I have been renting a home for 3 years with option to buy. Agreement with owner states half the rent goes towards purchase for down payment. Loan has been approved but the bank wants proof that I paid owner in one check when I've been paying it every month with my rent for 3 years.

How do I handle this?


Asked on 12/18/04, 3:54 pm

2 Answers from Attorneys
Arnold Nager Arnold H. Nager, Esquire

Re: Down payment paid in installments

Send them a copy of your lease highlighting the option and down payment provisions. Enclose copies of cancelled rent checks.

Good Luck

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Answered on 12/18/04, 5:58 pm
Walter LeVine Walter D. LeVine, Esq.

Re: Down payment paid in installments

While I concur with Arnold on the technical correctness, based upon actual facts, two other suggestions are made: (1) Just have the Seller issue a letter verifying receipt of the total amount, as a non-refundable deposit, or (2) since your exercise of the option is tantamount to a payment of the amount to be credited, and the credit will be in a lump sum, again have the Seller issue a letter confirming the receipt of the funds. Perhaps this could be coupled with Arnold's suggestion, as I am sure the bank (lender) not only wants confirmation of the payments by you, but some recognition by the Seller that they have approved your exercise of the option and the Seller's willingness to go through with the transaction, as provided in your lease.

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Answered on 12/20/04, 2:59 pm


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