Lease Option contracts have a very high percentage of failure. Usually the earnest money in the purchase part of the lease purchase is non-refundable. But that totally depends on your specific contract. Deciding how to handle the earnest money is guided by the wording of the purchase and sale agreement part of your contract.
The lease payments are a separate issue. Hopefully you got first and last month lease payments plus a security deposit for the lease portion. Your lease contract will guide your choices here also.
Lease purchase is actually a good seller strategy because if the buyer / lessee decides not to move forward, you have their non-refundable earnest money and / or you still own the property. You can do another lease purchase, you can sell the property, or you can keep it as a long term rental, which is the best way to build wealth. You have lots of choices.
You received lease money for quite a few months and now the market has improved, so it is possibly a better time to sell than it was when you signed the lease. I sell in the Woodinville area and would be happy to meet with you for a no obligation consultation on your specific situation. I also work with investors
You can contact me at my web site, http://www.karenmcknight.com .
Okay, first of all, be VERY WARY of any answer that includes "absolutes" (ie: "short sales are great deals" or "short sales take at least 6 months") because no two deals are exactly alike. Short sales can be really great deals. They can also be really bad deals. They can also go RELATIVELY quickly or very, very painfully slow. I've experienced them from both the viewpoint of the buyer and the viewpoint of the Real Estate Agent. Check out my blog for the story of my short sale: http://www.trulia.com/blog/jim_olive/2012/05/short_sales_in_key_west_bargain_or_blight
Dan has a great answer. I like his statement "Just because the buyer is related to the agent doesn't make it a bad offer, but it should have been disclosed up front so you wouldn't have these concerns."
Have you confronted your agent? What was their response? I too would speak with a real estate attorney. Good Luck, let us know how it goes!... more