hello, i signed for a house on a 2 year lease option, well, the 2 years are almost over, We fell behind on our payments in december. I was laid off for 6 months, so things got a little behind. We did not pay for dec, jan, and feb. I sent my half of the rent to the landlord in feb. My boyfriend has not sent his payment in protest of the landlords sneaky way of doing things. We received a letter from his lawyer in february that he wanted $12,000. (3,000 for rent, 9000 for late fees). the lawyer said if we could pay in 7 days, he would take $4000. Of course, we didnt have the money. Then we played phone tag with this lawyer for over a month. She never called us back. Two weeks ago, we received a letter to appear in court. we went, but since the landlord took the money I sent him, we have to now go back to court again to see another judge. Does anyone know if $50 a day in late fees are legal? we did sign a contract. It's there in fine print. What kind of options if any, do I have? I'm going to court, and scared out of my mind!!! He also has the $5000 lease option. I guess we're not going to get that back. please help
if they disclosed it upfront they can charge it but check with your state laws. unless you can work something out with the landlord, i think you may be screwed. and no offense, but BF not agreeing with landlord is no excuse not to pay.
Re: Re: late fees on lease option home help Probably not legal. The $50 per day late fee on $1000 rent comes to an Annual Percentage Rate of over 150% ($18250 per year late fees on $12,000 rent per year) which violates all states usury laws. Courts will enforce penalty clauses that reasonably compensate the aggrieved party for their losses, but will not allow this type of punitive clause to be enforced. By trying to collect on a penalty clause that is patently illegal and unenforceable the lawyer risks sanctions by the Court if he pursues it and possible disbarment. That's why the lawyer was so eager to settle for $4,000 instead of the $12,000.
