Legal Question in Real Estate Law in Pennsylvania

Hi, and thank you for your question. Your question is very simple, but the Answer is complex because there are many variables that have to be considered and these have to be taken into account when the Lease is being drafted and before the Lessee signs it and takes possession of your property. There are many ways to sell your house, but how the transaction would be structured depends on several issues, i.e., would it be at a set price ? If so, what date will determine the price ? Will it be a lease with an option to buy during a specified period ? Would the Lessee pay a set amount up front in order to have an option to buy ? In what manner would the Lessee exercise the option to buy ? Would that amount be credited towards the purchase price ? Who would be responsible for any major repairs during the Lease Term ? If the Lessee paid for any repairs, would he receive credit towards the purchase price for these costs and expenses ? Who will pay to correct any defects in title that might show up on the title report ? What happens to the option and the deposit the Lessee made, if he is in default of any term in the lease ? What would happen if the Lessee failed to exercise the option to buy during the specified "Option Period" ?

I am not trying to complicate the process, but these questions must be addressed at the outset and before the lease is signed so that there are no misunderstandings at a later date which might cost you legal fees and Court costs in order to have a Judge determine the intent of the parties.

I have prepared more of these agreements than I can count and I have found that the best way to handle these transactions is to address all these issues in the Lease itself and any Riders and attach the proposed Agreement of Sale to the Lease.

Unfortunately, I am not aware of any "Form Lease" that covers all of the above possibilities because each transaction is unique in its own way and involves different circumstances. It is best to have your attorney draft the documents that will be involved. I am not suggesting this in order to have you incur legal fees, but once everything is signed, you will be bound by the terms contained in the Lease, Rider, and the Agreement of Sale. The words of Benjamin Franklin can best describe what I am saying, "An ounce of prevention is worth a pound of cure".

I am available for consultation if you have any questions, or need help in this transaction. 610-259-2724, email - [email protected].

Kindest regards,

ANDREA G. TILLIS