We have a 12 month exclusive option...can the seller back out?

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Apr 13, 2019 2,051 Answer a Question

We are in a lease purchase situation. We paid a broker a flat fee to draft the contracts, but they are no longer involved in the transaction. We have lived in the property for six months and exercised our option on April 1st. We are clear to close pending appraisal. It came back 15k below contract price. EXCEPT, we anticipated this and our 12 month exclusive option states the sale price is "x number OR appraised value whichever is lower." The seller is now asking us to either wait until later in the option period to see if the value increases (but so might interest rates, or we might lose our financing approval, self employed) or they want us to pay out of pocket for the amount the appraisal was short. Aren't they legally bound to the option contract they signed? They already agreed to sell for appraised value if lower, right? We have been dealing with them directly, but I am inclined to hand this over to my attorney.

Diamond

Cagdas Acar

About 4 years ago

Hi Rebecca,

You are doing well by consulting with an attorney. As real estate agents we can not give legal advise.

Regards,

Cagdas Acar
Msc CPA VLB PSA
832-283-1091
acarster@gmail.com
www.homeswithcagdas.com

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Mark McNitt

About 5 years ago

Hello Rebecca,

This is a perfect example of why Realtors do NOT deal with "Lease to Purchase". There really is no such transaction. It should be a called a "Delayed Sale" or something like that. Not using standard forms that are created by Attorneys, too many "what ifs", etc. Also, Sellers/Landlords can scam renters/future buyers without them knowing it.

Yes, reach out to an attorney. For those thinking about doing this, just offer a normal contract with a price set, closing date set and use the temp buyers lease form and now your leasing the home prior to closing. These forms already have the "what ifs" covered.

Mark McNitt
MarkKnowsHouston.com
832-567-4357
Bernstein Realty

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Dori Lacamu

About 5 years ago

Hi Rebecca,

You should definitely contact a lawyer. As a REALTOR I can not give legal advise. If you need a list of real estate attorneys please don't hesitate to contact me.

Dori Lacamu | Broker Associate
KELLER WILLIAMS METROPOLITAN
5050 Westheimer, Suite 200 | Houston, TX 77056
281.788.0495 (c) | DoriLacamu@kw.com

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Veronica Mullenix

About 5 years ago

You are correct in your decision to have an attorney review your contracts!! The Lease Contract and the Purchase Contract might contain conflicts that only an attorney can remedy.The terms related to the purchase are contained in the Purchase Contract. AND, the Lease too has its terms. My hope is that an attorney can draft an Amendment to either or both contracts to give you and the seller relief from this conflict between the two Contracts. You need assurance from an attorney that your purchase contract is ironclad.

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Matthew Wigtil

About 5 years ago

Yes, I think you are on track with handing it over to your attorney! As Realtors, we cannot offer legal advice. I hope things work out well for you in a timely fashion!

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Yvonne Chauvin

About 5 years ago

Good morning Rebecca,

Please contact a real estate attorney for assistance. We cannot provide legal advice and are not party to this transaction.
Never, ever enter into lease to purchase without an attorney to begin with. There are too many moving parts in such transactions and brokers/real estate agents don't have enough promulgated forms to be able to broker such transactions.
Call an attorney. Most will be able to offer free consultation. If not, small fee that you pay them may just save you thousands of dollars in the long run.
Thank you,

Yvonne Chauvin- REALTOR
Better Homes and Gardens Gary Greene Real Estate

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