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RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 28371
Experience:  10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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I have a rental property in California. I have a lease

Customer Question

I have a rental property in California. I have a lease contract with the tenant with an amendment at the end of the lease that states" the tenants have an option to purchase the property for what is owed." By Feb 1, 2016. The lease ends on March 30, 2016.
The loan amount is approximately $320,000. Nothing else regarding the purchase was stated. We have asked the tenants to pay our closing cost. In order for them to purchase the home, they need make an $366,000 offer to cover all costs. Are we obligated to except the offer?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  RealEstateAnswer replied 1 year ago.

Good afternoon. You may have to. The reason why I say this is because YOU allowed/offered them the option to purchase it, in the agreement. You and them both signed this agreement and the amendment, which gives them a right to exercise the option of buying the home, for whatever is owed at the time stated within. Moreover, you now can not come back and demand they pay your closing costs, since that was not an original term/condition to the agreement. There was a lease and they have the option to buy it for the current amount owed and if they can/will, they could go after you and sue and force the sale, if you refuse to sell. This is not a simple offer to sell the home, where you can review offers like a regular sale. There was an agreed upon price ( i.e. what is owed at that time) and a time in which it would need to be paid, if they wanted it. They could have grounds to sue if you do not sell but you should retain a real estate attorney to review the entire document, to see the legal effect it has with all the language. This appears to be a lease with the option to buy type of agreement.

Expert:  RealEstateAnswer replied 1 year ago.

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Expert:  RealEstateAnswer replied 1 year ago.

I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!