I am renting a house with an option to buy. But now i don't want to buy this house b/c the other houses in the neighborhood are selling alot cheeper and the landlord wont go down on the price.
I put $10,000 down on the house (not to be confused with a deposit for renting the place). The sales contract says that this money is non-refundable, if the house is not purchased. But I am being told by realtors that she cannot keep the down payment if I don't purchase the price b/c a lease agreement with an option to buy bounds the seller not the buyer.
2006-09-16 06:43:32 · 5 answers · asked by freida1973 2 in Business & Finance ➔ Renting & Real Estate
I have been living in the house since January. Two sepereate contracts were drawn up, one was the actual lease and the other was the sales agreement saying that I was going to buy the property when the lease was up. But since our area is overdeveloped and it is a buyers market the price dropped, but she is not dropping on the price. I would be foolish to by the house for the price that was set in January.
2006-09-16 07:30:53 · update #1
A very simple question: Are you sure this is a lease agreement with an option to buy and not a lease/purchase agreement?
If it is a lease w/option, then the seller is the only one obligated to perform if you buy within a predetermined period. Yes you may have paid a non-refundable down in exchange for the right to this option... Depends on your contract.
If this is a lease/purchase agreement, then you are both required to perform....
My best advice in your situation, contact a lawyer to find out what your options are.
2006-09-16 07:13:00 · answer #1 · answered by CMR2006 3 · 0⤊ 0⤋
You need to consult with an attorney. If the $10k was the price of the option then it's gone if you don't follow through with the purchase. That would be WAY high for an option price unless we're talking about something in Malibu with an ocean view.
If it was a down payment, it should have been placed in escrow with a title company or with a real estate attorney. If the deal does not close, everyone gets their money back directly from the escrow firm. If you gave it directly to the landlord/seller, you may be entitled to get it back, but may have a heck of a time collecting on the debt.
Only an attorney can give you legal advice. A realtor cannot give legal advice. Consult with a local real estate attorney to find out what your rights and responsibilities are.
2006-09-16 14:08:56 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
When did this all occur? In most states you have 72 hours to cancel any real estate contract.
That is three business days, not including weekends.
You say you have an option to buy. If you choose not to exercise that option the money should be refundable. $10,000 is an awful stiff price for an option unless the property is worth millions.
It looks like the landlord knows he can't sell his house for the option price and is trying to lock you in. However, the contract may be againt the laws of the state in which it was executed.
If the 72 hours has run, consult a lawyer. He should be able to get the money back.
2006-09-16 13:54:14 · answer #3 · answered by jbowler 3 · 0⤊ 0⤋
Okay...how about a little education for "Bowler". 1st and foremost; there is only a rescission period on real estate when you are refinancing, not on the purchase of a home. Once the home is purchased, the deal is funded and it is finished, no room for "buyer remorse". Refinance transactions allow for a waiting period, but is is NOT 72 hours, and it DOES include "BUSINESS DAYS". Saturday is considered a business day, Sunday is not. The period is 3 days starting on midnight of the day the loan closes, and runs to midnight on the 3rd day. Please educate yourself before answering questions on Real Estate...
As far as your down payment, if you have a Realtor, then talk to the Realtor Adan tell them you want it back, just so the deal is not closed. If you think that you need an attorney, you may want to go get one as soon as possible.
Good Luck.
2006-09-16 21:35:21 · answer #4 · answered by Kaz 3 · 0⤊ 0⤋
No one can answer this question without reading the contract. It is best to have an attorney review it for you.
Regards,
Joe Ballarino
http://www.AmerivestRealtyofNaples.com
2006-09-16 14:42:09 · answer #5 · answered by Joe_Ballarino 3 · 0⤊ 0⤋