(Cliff notes are included below if you dont want to read it all) Last April, we rented a house and was told many times that we would be able to purchase the house at the end of the year if we chose to do so with 100% of the years rent to be considered as a down payment for the house. This was a big selling point for us and we took it. Throughout the year we were told numerous times that they were looking to sell at the end of the contract and told that if we were approved for the financing that we could buy it. In January, we were given their asking price, which we happily accepted, and asked to start seeking funding and a mortgage commitment, which we did. After we received the commitment and provided it to the owners, they then said, "we don't want to sell it to you", which threw everything up in a tailspin as we dealt with many personal health issues, and now only have a month and a half's notice before the lease is up to look for another place AND MOVE. Given the size of the place and lack of time is totally undo-able and they are refusing to extend the lease any further (which we would have no problem paying for) to make up for it. In addition, since we had expected to have all then rent considered a down payment, there was no money saved during the year which could be used as one on another place so it's back to renting which limits the choices even more. What I have done is quickly come up with the letter below and will try one more time to get a sale agreed to and am looking for ANY AND ALL suggestions on what route to take and if anything should be added or removed on the letter. CLIFF NOTES Rented house, told numberous times we could buy it and all rent would be considered down payment Asked to look for and get a mortgage, which we did, presented commitment, owner then refuses to sell house, which puts tons of pressure on now with 1 1/2 month left on lease now to find a new place AND MOVE which is impossible. Writing letter asking owner to reconsider and am asking for any of your suggestions ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ March 30, 2004 Dear ______ Although you have recently refused to sell the property located at ________, we would like to ask that you reconsider your decision. When we originally signed the contract to rent your property, we were told by yourself that we would be given the first option to purchase the house. During our many conversations with yourself, you continued to express interest in selling the house to us, provided terms, and even asked us to seek a mortgage commitment, which we did. The terms offered by yourself, as recent as January 2004 were, $275,000 for the house, plus a down payment of $25,000 being applied as a result of the rental payment for the last year. We then went out and successfully received a mortgage commitment at the asking price. After presenting the commitment to you with the exact figures you had requested, you then refused to sell us the house. We like the property and have taken prodigious measures to ensure that it remains in top shape as if it was our own, and would like nothing better then to be given the privilege to purchasing it from you, as you had talked about ever so many times during our year as your tenants. As a result, we would respectfully request that you please reassess the situation and allow us to purchase the house at the terms you had suggested. Respectfully yours, ______________________ name
I guess my only question would be: Was this "deal" outlined in the lease or in any othe written form? Although verbal contracts can be enforced, I don't know the extent you'd be willing to go. Also, it would totally suck if your years worth of payments were used as a down payment for some other person who offered more. I'd definately find out why the owners had a change of heart which has left you in a terrible handle. I guess renewing the lease is out of question as well? Sorry I'm of no help but I do like your letter. I would remove "given the privilege" and replace it with "given the opportunity".
Re: Re: big dilemma (suggestions needed) Nothing in writing, and I know this will sound like everyone elses stories, but it's true, because up to the refusal to accept the offer, he was the best landlord you could ask for and handled everything quickly and professionally. An extension is out of the question, they want us out on the date of the lease's end. Would taking this case to court be advisable ? If not to buy the house, at least for more time to find another place and move out ?
Re: Re: Re: big dilemma (suggestions needed) Sounds like the landlord has somebody who's willing to pay him more for the house than you were. He don't want to sell it to you and he don't want to rent the house. And it's for sure he don't want to let the house set empty.So what else is left other than someone offered him more money?
Re: Re: big dilemma (suggestions needed) Never rent to own a house unless the price, payments etc. are spelled out in the contract. Could you sue? YES. Do you have a letter or something else in writing, where the owner says he will no longer honor your rent to own agreement? If you do, or if you could "trick" him into writing something it would show that there was a contract, and could be your basis to sue.
Re: Re: big dilemma (suggestions needed) When you acquired financing for the home, were you approved for this specific property or just preapproved for the amount? Did the Mortgage broker/lender EVER speak to the landlord/property owner regarding the purchase of this particular property? what about an appraisel? Is there any financing documentation with the address of the property on it? 3day
Re: Re: Re: big dilemma (suggestions needed) They never spoke to the owners, but, yes, the mortgage approval was specifically for the current property and lists it on the paper.
Re: Re: Re: Re: big dilemma (suggestions needed) The owner could claim he had no knowledge a loan was approved, you just took it upon yourself to pursue it. ><- <>- ><- <> ~~~ ><- <>- ><- <> ><- <>- ><- <> ~~~ ><- <>- ><- <>
Re: Re: Re: Re: big dilemma (suggestions needed) I can also get the real estate agent that showed the house last year to compile a letter acknowledging the "with option to buy" if that will help.
Re: Re: Re: Re: Re: big dilemma (suggestions needed) That would be a great idea. Especially if you decided to fight for the right to buy the house. I have seen "verbal contracts" stand up in court. I don't know if you'd be willing to take it that far, though. I think he found another buyer offering more $$$. At some point during your residing there, someone probably got wind of the deal you were getting and 1 upped you. That's my guess. Unless you're willing to fight for the house under the terms you and the owner agreed to, you have few options.
Re: Re: Re: Re: Re: big dilemma (suggestions needed) Finishing up the letter and going to get it sent out certified tomorrow. For the closing section, should I use the following or a softer tone? "Please let us know of your decision within 7 business days of receipt of this letter or we will be forced to pursue other options." If this letter fails, since it is such an important matter, we have no choice but to try the courts for (A) the chance to purchase the house or (B) at least time to find another place. Thanks for all your advice so far and if you can suggest anything further please let me know.
Re: Re: Re: Re: Re: big dilemma (suggestions needed) You are going to have to check your state's real estate laws. Oral contracts for RE may not be enforceable in your state. Sorry to be doom and gloom.
Re: Re: Re: Re: Re: big dilemma (suggestions needed) I don't know what state you're in but I know that when I was younger and living in New York City people that were "on the streets" so to speak were there because they just didn't pay rent etc. I know that in NY there are laws that protect tenants, I'm wondering aren't there similar laws in other states that protect a renter from being just kicked out? The landlord may have to have provided notice within a certain amount of time before lease end advising the tenant that the lease will not be renewed? If that's the case, continue renting until the alleged other buyer with more cash gets sick of waiting to buy a house. Good Luck and keep up "posted"!
Re: Re: Re: Re: Re: big dilemma (suggestions needed) just curious, where is this house located, 275,000 buys you an awful lot around here. We paid 200,000 for 3000 sq feet. and 25,000 for 12 months rent, thats like 2000 per month, and you were able to finance 250,000. Making money like that you should be able to afford some place to live. I mean thats a huge house, huge payment and you must have a massive income. I suspect that if none of this is in writing you have the center of the donut, (translation) nothing.....
I am wondering if the landlord made up that deal just to insure that you would pay your rent promptly and fully, and just wanted you to believe that you were building up a down payment?
Re: Re: Re: Re: Re: big dilemma (suggestions needed) Look into IL landlord tenant laws. There may be something in there about the landlord having to give you notice of non-renewal of lease within a certain amount of time. Become a squatter!
Re: Re: Re: Re: Re: big dilemma (suggestions needed) go to your states website, something like www.state.il.us and look for a link to judiciary perhaps then link to landlord tenant rights or laws... good luck!
