Home Buying in Charlotte>Question Details

imad300, Home Buyer in Charlotte, NC

Can a builder buyout my apartment lease? or is that illegal? I want to buy a new house but lease agreement is holding me back.

Asked by imad300, Charlotte, NC Fri Sep 28, 2012

Help the community by answering this question:


Depending on what loan you go with, lenders are not allowing the builder to buy out leases anymore. What I have done is have the builder/seller pay for closing cost which then frees up money for the buyer to buy themselves out of the lease. Some apartments let buyers out of their lease if there is a waiting list for tenants or if they know that the buyer is buying a home. Call or email me and let's discuss more.

Abby Nelson
1 vote Thank Flag Link Fri Sep 28, 2012
In NC, a landlord is obligated to "mitigate their loses" from a broken lease. What this means is that if you were to break you lease, your landlord is obligated to pursue finding another tenant to release the apartment to. If the landlord is able to release the apratment before your original lease is up - you would no longer owe the remainder of the lease payments. The rental market is tight in Charlotte and, it may be that there is a waiting list in your complex. Talk to the leasing manager to gauge how long it will take to re-lease your apartment.
0 votes Thank Flag Link Fri Sep 28, 2012
Good afternoon, IMad.
There are a lot of ways to negotiate a new home purchase. Getting the financing right is one of the most critical pieces. There are several ways to deal with an existing lease, each has a potential different impact on your personal finances and the price and terms of your new home purchase. You should be aware that everyone you meet at the new home development works for them builder. While they will be friendly and nice, they do not work for you! But when you come in with a New Home Buyers Agent Advocate you will have someone working exclusively for you, always in your best interest. from the first contact through negotiations and construction to the final settlement and closing. Every decision. All the time. If you have a full time agent with a Masters degree in Planning with Finance and over two decades of experience, working for you, you will likely do better in negotiations. I'd be glad to discuss your options with you. If you appreciate this answer, please give it a thumbs up, or if this was the most helpful answer, please say thanks with a best answer click.
0 votes Thank Flag Link Fri Sep 28, 2012

that is a question for the lender doing the loan on the house. It will depend on the type of loan you are receiving and whehter the builder wants to do it or not. In years past I have heard it customary for builders to offer incentives of paying off existing leases on apartments up to X amount of months and dollars when you bought a home.

However; with all the new regualtions in place for the lenders today after the mortgage meltdown I am not sure that they can do it anymore. It seems that you would be violating some of the new mortgage guidelines (depending ont he loan you are getting).

A couple of options is give you apartment notice as much notice as possible and see if they can procure a tenant for it ebfore you have to move out...Then you might be able to get out of the lease (break it) and not have to pay any fees or the remainder of the lease. I have ahd a couple fo clients recently go that way and it cost them a couple weeks of rent so theat the complex could get the place ready and while it was vacant..

Dave diCecco
Coldwell Banker United
0 votes Thank Flag Link Fri Sep 28, 2012
I want to add that the builder may, could, or will add that expense SOMEWHERE in your purchase. read closely and get representation!
0 votes Thank Flag Link Fri Sep 28, 2012
Yes they can and do. I sold a home in Mount Holly a few years back and the builder did just that.

Kindest Regards,

Jeff Monfils 704-975-7616 - Direct
Broker | REALTOR | Property Manager
0 votes Thank Flag Link Fri Sep 28, 2012
Yes they can buy it out depending on if the builder will do it
0 votes Thank Flag Link Fri Sep 28, 2012
Frank, how is your experience with Essex homes along this front?

Jason - jasonmarc1 at gmail.com
Flag Sat Mar 9, 2013
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