Legal Question in Real Estate Law in Washington

Re: Contract vs Lease option

Your question raises a large number of issues. It is clear that given the investment you need to consult with legal counsel about the specifics of your situation, an in particular review the documents that form the transaction. However, generally, an option is distinguished from a purchase contract by the right to have immediate possession. Under an option, the person holding the option has no immediate right to possession of the real property. In a land sale contract, the purchaser normally has beneficial possession and the legal right to possesion. In your situation, it appears that you have a lease (and with it the right to possession) with an option to purchase. But it also appears that the "double forfeiture" as you describe it may give the vendor (sellor/lessor) the right to take back the portion of the property purchased on contract. Generally, the law disfavors forfeitures. If there is any way a court could construe the contract here so that it could avoid forfeiting that portion of the property, then courts will usually attempt to do so. Also, you may have an equitable right to recover from the seller the value of the improvements to the property. Again, given the amount in dispute, you need to consult with legal counsel who can review the documents and transaction to give you complete advise. Please contact me if you would like to set up an appointment.