Home Buying in Charlotte>Question Details

Our Home Sold, Home Buyer in Charlotte, NC

If a lease to own contract is in place when I buy a rental property, am I obligated to honor that contract with the tenant?

Asked by Our Home Sold, Charlotte, NC Tue Apr 23, 2013

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Yes, the terms of the "Lease to Own" contract would remain in place if you bought the property. I would steer away from a property like this. In NC, a tenant that has a "Lease to Own" contract has what is called "Equitable Rights" and it is very hard to evict them if they stop paying. If you want to buy a home with a tenant in place, make sure they have a regular lease. That is the best way to buy investment property. I deal with a lot of investors and have investment property myself. If I can help you in any way, please let me know.

April Crowder
Coldwell Banker United, REALTORS
704-533-2220
0 votes Thank Flag Link Tue Apr 23, 2013
Your bes bet in a situation like this is to contact an experienced Real Estate Attorney who can review the terms and conditions of, not only the lease, but also the purchase contract. Only an attorney can give you the legal advise you are seeking. Better safe than sorry!

Kathleen Turner, ABR, CRS, ePro, Certified Paralegal
The Kathleen Turner Realty Group
Keller Williams Realty
704-609-2688
KathleenTurnerRealty@gmail.com
1 vote Thank Flag Link Tue Apr 23, 2013
Good morning, Our.
In NC, tenant rights are well-protected. Terms in a lease to own contract can vary greatly. I would not advise making an offer until the Seller provides all current contracts, options, deeds, covenants, restrictions and other legal agreements, you hire a licensed real estate attorney in the state where the property is located to review them, and you fully understand your attorney's opinion of the rights of all parties. If you appreciate an answer, please give thumbs up. For the most helpful answer, please say thanks with a best answer click.
1 vote Thank Flag Link Tue Apr 23, 2013
Yes. In North Carolina when you buy a property that has an existing lease the new buyer is bound to honor the terms of that lease. In this case this would include the lease to own clause.
1 vote Thank Flag Link Tue Apr 23, 2013
In the state of Minnesota where I sell real estate, a lease of any kind supersedes the sale of a property. I would say the best course of action would be to consult a real estate attorney to find out what the laws in your state are and what your options are.

Best of luck,

Tom
1 vote Thank Flag Link Tue Apr 23, 2013
Yes, that could be scary depending on the terms.
0 votes Thank Flag Link Tue Apr 23, 2013
Yes. In North Carolina, leasing contracts carry over with the property. However, once that leasing term is up, you are not obligated to renew it.
0 votes Thank Flag Link Tue Apr 23, 2013
generally in North Carolina you are obligated to honor the existing lease of the house...In your case it would include the lease to own option. But then the question comes out as to why would you want to buy the house with a option to own form the current tenant? And why would the seller want to sell the house to you if they already have an option clause contract on it now?

I would get an attorney involved and be leary of this transaction...Something does not seem to be right based on the information you are providing.

Dave diCecco
Realtor/Broker
Coldwell Banker United
Cell;704-519-7895
ddicecco@cbunited.com
http://www.davedicecco.com
0 votes Thank Flag Link Tue Apr 23, 2013
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