i live in pa .the other person has till 2009. to close. is it legal for them to have given us a rental contract? and can they just come and take over the property?
2007-06-04 13:28:24 · 4 answers · asked by rose t 1 in Business & Finance ➔ Renting & Real Estate
They have not yet breached your implied warranty of quiet enjoyment. Therefore, so long as you are not evicted, and when you tender the payout price to own the unit, if you do, and he produces good and clear title, he has done nothing wrong.
This is similar to a sublease or assignment. The difference is that in a sublease, the sublessor (guy you are renting from) retains some interest in the property. Or, for example, if you are making monthly payments to him, he has retained some interest. If you make monthly payments to the person he is renting from, then it is more likely than not an assignment.
It sounds like your situation is a sublease. It is perfectly legal for them to give you a rental contract. If you get evicted by him for no cause in breach of the agreement, you can sue. If the person he is renting form evicts him while your contract is still in effect and you are forced to leave, you can sue the same person, the person you are renting from, for a breach of the implied warranty of quiet enjoyment.
Good luck, and if you get evicted or go to own the unit and he doesn't allow you, get an attorney to file a complaint or reach a settlement.
2007-06-04 13:53:49 · answer #1 · answered by jkersman01 3 · 0⤊ 0⤋
jkersman01 gave you a good answer. This is typically referred to as a "Sandwich" Lease Option. The person you're renting from has an option to purchase from the actual owner at a specific price and before a certain date (2009 in this case). He has the right to sublease it to you with an option to purchase at a higher price than his. He usually make a little money each month from the "spread" between his payment to the owner and your payment to him. At closing he'll do a "simultaneous closing" or "double close" where he'll buy from the owner and you'll buy from him 10 minutes later. You'll bring the funds for the purchase, the attorney will pay the Owner what he's owed and the investor that you're renting from will get a check for the difference.
Perfectly legal and done every day.
Now, as to the eviction, if you've done nothing to warrant an eviction you fight it just as you would with any other rental. If you've violated the terms of your agreement, however, he can legally evict you just as he would any other tenant.
2007-06-05 14:56:39 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I wouldn't think that someone could give a rent to own contract on property THEY don't own. See a lawyer.
2007-06-04 13:37:36 · answer #3 · answered by Judy 7 · 1⤊ 1⤋
Wow, I don't think it is legal to sell something that isn't your, no matter what state you are in. if they don't own it, they shouldn't have given you the contract to rent to own. I wold get lawyer. You might be able to get your money back.
2007-06-04 13:37:43 · answer #4 · answered by uphill climb 3 · 1⤊ 1⤋