Home Buying in 85022>Question Details

Rebecca, Home Buyer in Phoenix, AZ

We signed a lease with option to buy-and since living in the unit find we do not choose t buy on this

Asked by Rebecca, Phoenix, AZ Mon Mar 31, 2008

property-however the lease says it is until 2009-are we bound by that? We were told if we chose not to buy after a couple of months we would only lose the $200 deposit. And the other day we were told that they are not taking any renters now. So if we decide not to buy we woud have to leave-

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When I offer a lease option they have TWO different agreements. “The lease” which is just like renting the home and “The option” which is a purchase agreement with the terms if you are going to proceed with the purchase at the end of, or during, the lease period AND/OR what options you have at that point.

If you’re not willing to proceed with the purchase contract you should contact the landlord near the end of your rental agreement and ask them what your options are. They may continue to allow you to rent, especially if you are a tenant who paid the full rent on time and took care of the property. Remember the landlord is an investor, if it’s good for them and good for you they have no reason not to continue this relationship of landlord and tenant.
Regardless your deposit should be returned to you at the end of your lease PROVIDNG you left the property in good condition, unless it wasn't a deposit but an option to buy payment. I return deposits as long as the tenant leaves the property is left in good condition and I can immediately rent or option it again. This is all printed in my documents so look at your paperwork to find more answers.

Good luck and if I can help please contact me. Dan Trembulak, licensed real estate broker, Buy-Sell Realty Inc. Seminole, Florida. E-Mail: RealtorDan@Juno.Com or 727-393-6500.
1 vote Thank Flag Link Fri Jun 6, 2008
I would contact my local Escrow office legal department so they can review your lease or your local housing authority in the area I'm sure they will give you direction on where you can obtain information on your tenant rights.
0 votes Thank Flag Link Thu Jun 5, 2008
Rebecca,
The contract most of the time covers this issues. Like Ute said It constains legal languague.If you enter into legal contract you must read it. I strongly encourage you to read it .
Best Wishes
Web Reference: http://ownyourhomeaz.com
0 votes Thank Flag Link Mon Mar 31, 2008
If you truly have a lease/ "option", then hopefully your contract states that you will be leasing the property for a specific term, however, you will also have an option to purchase the home within a defined time period as well. You should have the "option" to purchase, but not be required to. Please carefully read your contract to see what you are obligated to do, as well as what results if you breach either the lease or the option contract.

The way it sounds from what you described, you should still be able to lease the home until the end of the lease term regardless if you don't want to purchase the home. The option gives you just that, the option to purchase the home if you choose to. The option protects you from the owner selling the home to someone else within the term of the option agreement.

For the best advice on your situation, please consult a real estate attorney.
Web Reference: http://www.jameswehner.com
0 votes Thank Flag Link Mon Mar 31, 2008
Hi Rebecca. I would hope your contract contains terms that address that situation. In real estate, everything needs to be in writing and what you were told does not trump what the contract says. The interpretation of your written contract is a matter for a licensed AZ attorney. Even if we had the benefit of knowing all the terms of the contract, we could not advise you here on Trulia as real estate agents cannot give legal advice. It is possible that your contract contains language that would allow you to cancel the agreement within a few months and lose only your deposit. It only makes sense to me that you'd have to leave if you cancel the agreement. You really need to seek legal advice. Good luck.
0 votes Thank Flag Link Mon Mar 31, 2008
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
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