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Tina
Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 5436
Experience:  17 years of legal experience including real estate law.
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I'm currently in the process of buying a new build and

Customer Question

I'm currently in the process of buying a new build and trying to sell my home. My builder has offered to lease my home with the option for them to sublease it to their clients waiting for their home to be completed. My builder will also sell my home. My lender would quality my loan with the builder's lease. I need guidance on how the lease should be written. I'm concerned that the builder, after 6 months, may choose to cancel our lease, leaving us with 2 mortgages to pay. Also, it is appropriate to specify our lowest sale price that we would accept for our home>
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  LawTalk replied 1 year ago.
Good afternoon,
I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today. In order to give you a clear and concise answer, I will need some additional information about the circumstances, please.
1. Why would you allow your builder to try and sell your home?
This seems like a very crucial matter for you, and your questions and issues suggest that an in-depth conversation might better suit your needs.
More importantly, there are so many legal nuances to the process that you are contemplating that short of a conversation, it will be all but impossible to provide you a realistic picture of what you are looking at, and the risks you face.
If you are interested, I can offer you a phone conference as opposed to continuing in this question and answer thread. I will make that offer to you after I get this posted to your question thread. All you need do is accept the offer if you would like me to call.
If you are not interested in a call, I will be happy to opt out and allow another profession to consider your situation and questions.
Doug
Customer: replied 1 year ago.
I'm not interested in having a telephone conversation.
Expert:  LawTalk replied 1 year ago.
I am unable to further assist you in this matter, and I am going to opt out of your question and open this up for other professionals.
Your question is being placed back in the question list for other professionals to see, and to respond to. You do not have to stay online for the question to be active. Should another professional pick it up, you should be alerted by email unless you actively disable this feature.
There is no need for you to reply at this time as this may "lock" your question back to me, thus inadvertently delaying other professionals' access to it.
I apologize for any inconvenience and wish you well in your future.
Doug
Expert:  Seattle Scott replied 1 year ago.

The lease term should be "until lessee finds a buyer for the subject property at no cost to lessor" The risk is that the builder will flake out on the lease payments once it has received all the money for the new house, so it would be wise for there to be a deposit paid to you of two months rent or hold back on the construction payments to the builder of two months rent. Subletting is fine so long as there is a provision in the lease that any sublease shall be a month to month tenancy, so you don't get in the position that you are trying to sell with a subtenant in place with a 3 month lease term . If you think it would be hard to sell your house or find a replacement tenant if the builder flakes out ( as in it might be 6 months with two mortgage payments and no sale or rental income) then you should think long and hard before you move forward with this plan.

I will pick up with you tomorrow.

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