Lease Option agreement fell apart

  • Filter
  • Time
  • Show
Clear All
new posts

    Lease Option agreement fell apart

    figured this was the best place to get some info.

    Wife and I moved into a house in dire need of repairs....wife wanted the house b/c she wanted a fixer-upper. What needed to be repaired was the kitchen needed to be completely redone (water damage ruined everything, landlord took the insurance money and paid on mortgage), and HVAC needed to be replaced. We agreed to these things, my wife made out a contract and we put down $1500 for the lease-option and paid $250 over our rent as part of the agreement.

    Then everything started to go downhill...

    We stayed in the house for 1.3 years...moving out this weekend and the following happened in that time...

    -took everything out the kitchen b/c it was molded...don't know why she spent the money on her mortgage instead of repairing the kitchen
    -taking a shower in the tube and the tub cracked...was an old fiberglass tub
    -part of the bathroom floor seemed to be leaning in...let landlord know...but from the smell it seemed to have started rotting the beams below long before we moved in
    -house ran on screw fuses and half the house was on one circuit...fuses were constantly blowing and the house nearly burned down b/c the wrong type of receptacles were installed throughout the house
    -went to get the HVAC checked out and the whole system need to be replaced, but would work b/c the entire electrical system in the house need to be repaired first (which was not in the scope of our agreement and let the landlord know)

    In the end, everything fell apart. We let the landlord know these things and asked for our $1500 back for the lease option agreement b/c what we agreed to could not be done unless she did the necessary repairs first. She refused and we decided that made the contract null and void. She said that the contract was illegal anyway, and that we need to do the necessary repairs to the kitchen before we move. We declined to do so because since she called the contract illegal and will not do her part in keeping the place habitable (I know we were there for 1.3 yrs) by repair the electrical and we're not going thru another hot summer b/c we can't install the HVAC unit w/o the electrical being done.

    but now she's selling the house but no one is interested for her asking price because her mortgage is about $40k more that what the house is actually worth and she bought the house as a rental property knowing this...actually she owns about 4 houses that she is trying to get rid of b/c she realized that she got in over her head and has no $$$ to repair any of her property...I bear no ill will against her b/c she has helped us out a lot, but I feel that we should get our$1500 back because she made the contract null and void b/c she refused to do her part in fixing the electrical

    any help? are we in the wrong for asking for a refund or even entitled to it?

    a copy of the lease my wife made out....some changes were made like the waivering of the deposit


    THIS AGREEMENT made and entered into on this __10th ___ day of (mo.) December_ (yr.) __2004_ by and between __ _________ hereinafter called Lessor and ____ and/or assigns, hereinafter called Lessee. The Lessor, for and in consideration of the sum of_$1,500.00___ dollars in hand paid by the Lessee, receipt of which is hereby acknowledged, hereby leases to Lessee, his/her heirs or assignees, the premises situated in the City of ___Garner_____ County of ____Wake____ State of _North Carolina_________,
    legally described as: ___________________________________________
    (If the legal description is not included at the time of execution, it may be attached to and incorporated herein afterward.)
    (Street Address: _) and consisting of _3 BR & 1.5 baths, Conventional styled house ____________ upon the following TERMS and CONDITIONS:
    A. Remodeling/ repairs to kitchen (including and not limited to cabinets, floor, walls and plumbing) are the sole responsibility of Lessee.
    B. Installation/ repairs to heating and air system (including and not limited to duct work, vents, filters and furnace) are the sole responsibility of Lessee.
    C. All installation, maintenance, repairs and alterations to premise are the sole responsibility of Lessee.
    D. If Lessee chooses not to exercise option to purchase, all installation, maintenance, repair and alteration projects must be completed before lease expiration.

    1. Personal Property: Said lease shall include the following personal property: refrigerator, stove, dishwasher____________
    2. Term: The term hereof shall commence on (mo./day) _December, 18th__ (yr.) _2004__, and continue for a period of _24___ months thereafter.
    3. Rent: Rent shall be $ _645.83___ per month, payable in advance, upon the first day of each calendar month to Lessor or his/her authorized agent at the following address: _____________________________ or at such other places as may be designated by Lessor from time to time. In the event rent is not paid within five (5) days after due date, Lessee agrees to pay a late charge of $ _25_________________ plus interest at ____________ % per annum on the delinquent amount.
    4. Utilities: Lessee shall be responsible for the payment of all utilities and services except _taxes and insurance _________ which shall be paid by the Lessor.
    5. Use: The premises shall be used as a residence and for no other purpose without prior written consent of Lessor.
    6. House Rules: In the event that the premises are in a building containing more than one unit, Lessee agrees to abide by any and all house rules, whether promulgated before or after the execution hereof, including, but not limited to, rules with respect to noise, odors, disposal of refuse, pets, parking, and use of common areas.
    7. Assignment and Subletting: Lessee may assign this agreement or sublet any portion of the premises without prior written consent of the Lessor.
    8. Maintenance, Repairs, Or Alterations: Lessee shall maintain the premises in a clean and sanitary manner including all equipment, appliances, furniture and furnishings therein, and shall surrender the same at termination thereof, in as good condition as received, normal wear and tear excepted. Lessee shall be responsible for damages caused by his/her negligence and that of his/her family, or invitees or guests. Lessee shall maintain any surrounding grounds, including lawns and shrubbery, and keep the same clear of rubbish and weeds, if such grounds are part of the premises and are exclusively for use of the Lessee.
    9. Entry and Inspection: Lessee shall permit Lessor or Lessor’s agents to enter the premises at reasonable times and upon reasonable notice for the purpose of inspecting the premises or for making necessary repairs.
    10. Possession: If Lessor is unable to deliver possession of the premises at the commencement hereof, Lessor shall not be liable for any damage caused thereby nor shall this agreement be void or voidable, but Lessee shall not be liable for any rent until possession is delivered. Lessee may terminate this agreement if possession is not delivered within ___7___ days of the commencement of the term hereof.
    11. Security/Option Consideration: The security deposit of $ __500___ shall secure the performance of the Lessee’s obligations hereunder. Lessor may, but shall not be obligated to, apply all or portions of said deposit on account of Lessee’s obligations hereunder. Any balance remaining upon termination shall be returned to Lessee.
    12. Deposit Funds: Any returnable deposits shall be refunded within fifteen (15) days from the date possession is delivered to Lessor or his/her authorized agent.
    13. Attorney Fees: The prevailing party shall be entitled to all costs incurred in connection with any legal action brought by either party to enforce the terms hereof or relating to the demised premises, including reasonable attorneys' fees.
    14. Notices: Any notice which either party may or is required to give may be given by mailing the same, postage prepaid, to Lessee or at such other places as may be designated by the parties from time to time.
    15. Heirs, Assigns, Successors: This lease and option shall include and insure to and bind the heirs, executors, administrators, successors, and assigns of the respective parties hereto.
    16. Time: Time is of the essence of this agreement. This offer shall terminate if not accepted before (mo./day) _______December ,18th_____________ (yr.) ___2004________.
    17. Holding Over: Any holding over after expiration of the term of this lease, with the consent of the Lessor, shall be construed as a month-to-month tenancy in accordance with the terms hereof, as applicable.
    18. Default: If Lessee shall fail to pay rent when due or perform any term hereof after not less than three (3) days written notice of such default given in the manner required by law, the Lessor at his/her option may terminate all rights of the Lessee hereunder, unless Lessee, within said time, shall cure such default. If Lessee abandons or vacates the property while in default of payment of rent, Lessor may consider any property left on premises to be abandoned and may dispose of the same in any manner allowed by law. In the event the lessor reasonably believes that such abandoned property has no value, it may be discarded.
    19. Option: Lessee shall have the option to purchase the leased premises described herein upon the following TERMS and CONDITIONS:
    a. The down payment of $5,000.00 shall be paid in full via one payment of $1,500 at time of move-in and the remaining $3,500 will be paid via installments of $145.83 over a period of 24 months.
    b. The total purchase price shall be $__106,000.00__ ( __________One Hundred Six Thousand____________dollars)
    c. The purchase price shall be paid as follows (this method my be amended as agreed upon by the Lessor and Lessee) : All cash

    20. Encumbrances: Lessee shall take title to the property subject to: 1) Real Estate Taxes not yet due and 2) Covenants, conditions, restrictions, reservations, rights, rights of way, and easements of record, if any.
    21. Examination of Title: Lessee shall have fifteen (15) days from the date of receipt of title report to examine the title to the property and to report, in writing, any valid objections thereto. Any exceptions to the title, which would be disclosed by examination of the records, shall be deemed to have been accepted unless reported in writing within said fifteen (15) days. If Lessee objects to any exceptions to the title, Lessor shall use all due diligence to remove such exceptions at his/her own expense within sixty (60) days thereafter. But if such exceptions cannot be removed within the sixty (60) days allowed, all rights and obligations hereunder may, at the election of the Lessee, terminate and end unless he/she elects to purchase the property subject to such exceptions.
    22. Evidence of Title: Lessor shall provide evidence of Title in the form of a policy of title insurance at Lessor’s expense.
    23. Bill Of Sale: The personal property identified in paragraph ___1_______ shall be conveyed by bill of sale.
    24. Closing: Closing shall be within ___30_____ days from exercise of the option unless otherwise extended by other terms of this agreement.
    25. Prorations: Tax and insurance escrow account, if any, to be transferred intact to Lessee with no prorations. Interest and other expenses of the property to be prorated as of the date of closing. Unpaid real estate taxes, security deposits, advance rentals, or considerations involving future lease credits shall be credited to the Lessee.
    26. Expiration Of Option: This option may be exercised at any time prior to its expiration at midnight
    (mo./day) _January 31st _________, (yr.) _2007____. Upon expiration, Lessor shall be released from all obligations hereunder and all of Lessee’s rights hereunder, legal or equitable, shall cease.
    27. Exercise Of Option: The option shall be exercised by mailing or delivering written notice to the Lessor prior to the expiration of this option. Notice, if mailed, shall be by certified mail, postage prepaid, to the Lessor at the address set forth below, and shall be deemed to have been given upon the day shown on the postmark of the envelope in which such notice is mailed. In the event the option is exercised, _____0%________ percent of the rent paid hereunder, as well as any security deposit paid, prior to the exercise of the option shall be credited upon the purchase price.
    28. Right To Sell: Lessor warrants to Lessee that Lessor is the legal owner of the leased premises and has the legal right to sell leased premises under the terms and conditions of this agreement.

    IN WITNESS WHEREOF, the parties hereto have executed this agreement the day and year first above written.


      Dunno mate you have landed in Europe more precisely the UK, look south and its on your left, (well its also on your right but that's a considerably further route) and therefore different laws.


        So to translate my colleague Energise's comment, it would appear from your terminology that you are based somewhere in the U.S.A. On this board, we are only able to deal with property matters in the United Kingdom and have no expertise in U.S. law or your property rules and regulations, so I don't think we can help.

        Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.


          Just found this.
          Interesting to see other jurisdictions' take on a familiar subject, no?
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
          2. Telephone advice: see
          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
          4. *- Contact info: click on my name (blue-highlight link).


          Latest Activity