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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 have a house and a separate lot together here in Portland,

Customer Question

I have a house and a separate lot together here in Portland, Oregon. I have mortgage loan on it. On 9/18/2011, I rented the house and the lot to a couple, . We signed an agreement called: Rent to Buy as is in couple. They had option for buy within 12 months. So if they did not exercise their option, then upon landlords discretion, the term can be extended, which we extended to about 2 years. They still did not exercise their option. Also, in the agreement we agreed they, will fix the place to refinance.
Current Situation
1. It has been way past their option to buy exercise, even after the extension of option
2. Very importantly, they really love the place and don’t want to move, especially they claim to be disable.
3. I have a cash offer from a individual to pay off my mortgage and the loan in full.
4. I really want to get out it after paying of the loan.
5. If the tenant would know that I am selling the property to someone else, they will create unnecessary commotion and legal issues.
Here is some option I had to avoid any litigation or legal problems:
1. Form a corporation and or LLC, Inc. etc and transfer the property to the entity and then sell it.
2. I guess if I sell it to someone else, the liability would pass on to them, right.
3. I really don’t thing they will buy, cause they “smoke pot” and will not qualify for bank loan.
4. What are your thoughts and if you help me find ways to approach this situation.
I am US Army Veteran. If there is any help, I will really appreciate it.
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  Ely replied 2 years ago.
Hello and welcome to JustAnswer. Please note:
(A) This is general information and is not legal advice. No specific course of action is proposed herein. No attorney-client relationship or privilege is formed by speaking to an expert on this site. This is repeated in numerous disclaimers throughout the site. By continuing, you confirm that you understand and agree to these terms; and (B) there may be a slight delay between your follow ups and my reply while I am typing out my answer.
What is the main issue here? That you can sell, however, you are afraid that they will trash the property and/or try to sink the sale if they find out that the property is being sold? Or, something else?
Also, are they now on a month to month lease per the lease contract, or, has the lease contract extended and if so, when does it end?
This is not an answer, but an Information Request. I need this information to answer your question. Please reply, so I can answer your question. Thank you in advance.