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Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 5436
Experience:  17 years of legal experience including real estate law.
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I entered into a rent to loan lease option at my current

Customer Question

I entered into a rent to loan lease option at my current location about 4 years ago. My original lease expired 2 years and I renewed the lease with an increased rental amount and an updated lease to own agreement that included the owner of the property taking care of closing cost and the down payment with a $985a month lease agreement. The current owner at that time opted to do a short sale with a new investor who will honor the current lease.
So for almost the last 2 years I have been paying the monthly rent to the new owner.
About 2 weeks the current owner said that she and the title company has been battling the bank that provided the original loan from the prior owner for the last 6 months and lost a case stating that the short sale was fraudulent.
She then informed us that we no longer pay rent to her and to contact the bank the holder of the loan to work out something with them. Also she stated that her lawyer advised her she doesn’t owe us anything because we were paying fair market value. She will recoup her money from the title insurance.
My question is since she will recoup her money from the title company isn’t she still responsible for honoring the lease and provide us the money we put towards down payment and closing cost or give back the last 6 months of rent (which ever one was higher)?
Submitted: 3 months ago.
Category: Real Estate Law
Expert:  Barrister replied 3 months ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply,but rest assured, I am working on your question.


Was there anything in the lease to own contract in writing that states that the seller is charging higher rents and that is to cover closing costs and the down payment?