Legal Question in Real Estate Law in Washington

leasing with option to buy

i have contract rent to own/leasing to buy must buy or have a mortgage set up within a 2 year period. i have decided the house has too much wrong with it and i do not want to buy. i have been in the house for a year. The way the housing market is now the price for this house is now way out of what its worth on market today. can i notify leassor and tell him i am not interested in buying. i know i will forfit the down payment but iam all right with that. is there any other penalty i might have to pay?


Asked on 1/19/08, 8:59 pm

1 Answer from Attorneys
Elizabeth Powell ELizabeth Powell PS Inc

Re: leasing with option to buy

look at your agreement. Does it say that you will exercise an option within a certain time? If so, then just don't exercise it. The contract controls. If you have all ready exercised the option, then yes, you need to provide notice that you do not intend to follow through so the owner can make other arrangements. It is my experience that you will end up forfeiting whatever down payment you made. You will be liable for rent, additionally (as you have been paying during the contract) but this is called an "efficient breach" and you can get out. Hope this helps. Elizabeth Powell

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Answered on 1/19/08, 10:15 pm


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