Any Lawyers or Anyone else knowledgeable on Lease/Purchase option on Home?

[Hitower]

So last August after telling our landlord that we were looking for a house to buy, she said she had something we should check out. A brand new house that she managed was available for a lease/purchase option. We liked the house so we took it. The lease we signed stated that for one year half of the rent would go towards the down payment at the end of that 1 year period. The lease also states that we can use that down payment towards any house owned by the owner because he is a contractor and builds a lot of houses around the area so if we decided we didn't like this one we could choose another.

So we have lived here since last August now. The basement was unfinished so we have almost completed finishing it into 4 additional rooms. So today during a conversation with the landlord, she says oh, but you can't buy this house because it shares the lot with the house next door. If we did want to buy this house we would have to purchase both houses.

So obviously I am a little frustrated. We have spent our money fixing up this house with an additional family room, two more bedrooms, and a laundry room. All this has been done with our own money. Obviously we would not have spent the money to fix up a rental house, but we were going by the lease which clearly states it is a lease/purchase agreement.

I am so mad I do not even want to deal with these people anymore, I would rather cut my loses and just find a house and buy it now that I feel these people are trying to screw us over. But, "we cant move either because we would be in violation of the lease and would owe 5 months of rent + fees to break the contract."

Sorry for long post. Anyone knowledgeable in this area can help I would appreciate it.

[Raoul]

So last August after telling our landlord that we were looking for a house to buy, she said she had something we should check out. A brand new house that she managed was available for a lease/purchase option. We liked the house so we took it. The lease we signed stated that for one year half of the rent would go towards the down payment at the end of that 1 year period. The lease also states that we can use that down payment towards any house owned by the owner because he is a contractor and builds a lot of houses around the area so if we decided we didn't like this one we could choose another.

So we have lived here since last August now. The basement was unfinished so we have almost completed finishing it into 4 additional rooms. So today during a conversation with the landlord, she says oh, but you can't buy this house because it shares the lot with the house next door. If we did want to buy this house we would have to purchase both houses.

So obviously I am a little frustrated. We have spent our money fixing up this house with an additional family room, two more bedrooms, and a laundry room. All this has been done with our own money. Obviously we would not have spent the money to fix up a rental house, but we were going by the lease which clearly states it is a lease/purchase agreement.

I am so mad I do not even want to deal with these people anymore, I would rather cut my loses and just find a house and buy it now that I feel these people are trying to screw us over. But, "we cant move either because we would be in violation of the lease and would owe 5 months of rent + fees to break the contract."

Sorry for long post. Anyone knowledgeable in this area can help I would appreciate it.

You need to read your original agreement. What exactly does it say? Also, can it actually be that the house you're in "shares" a lot with another house?

I can pull tax records and possibly a plat for you. PM me if needed.

[TripleDigitRide]

I'm far from a lawyer, but based on what you've described, I would think you had a case. If nothing else, you should be due the money you've spent on all that work.

[Guest strelcevina]

just go on this website, find your county click on it, write your address and you will find all tax info you need

Tennessee Property Data Home Page

[Guest 6.8 AR]

Without seeing the contract you signed, I couldn't answer you and I'm not a lawyer,

anyway.

That being said, if you signed a contract saying you may purchase 'this house or any of his houses', you may have a case. If he put two houses on one lot, he needs to split the lot and sell it to you. The Realtor that 'represented' you better have their ducks in a row. I'm not bashing Realtors(was one myself), but that representation

thing may be your redress if you are legitimately wronged. Read your contracts over

before you make any harsh decisions. A lawyer wouldn't hurt, whichever way it turns out.

Good luck

[Hitower]

It doesn't say the purchase of this house, it says

"1/2 of rent will go towards purchase of any Darrel ***** (omitted name for now) Home"

The other house is at the front of the lot, we are in the back. There is around 2 1/2 acres which is this house's front yard and was implied came with the house. the other house sits on about 1/2 acre and is separated from the rest of the land by my house. We share one driveway but i was planning on changing that once we had actually bought it.

My house faces the river, the other house faces the road. This photo was from google maps and hasn't been updated since the homes were built.

[Raoul]

It doesn't say the purchase of this house, it says

"1/2 of rent will go towards purchase of any Darrel ***** (omitted name for now) Home"

The other house is at the front of the lot, we are in the back. There is around 2 1/2 acres which is this house's front yard and was implied came with the house. the other house sits on about 1/2 acre and is separated from the rest of the land by my house. We share one driveway but i was planning on changing that once we had actually bought it.

My house faces the river, the other house faces the road. This photo was from google maps and hasn't been updated since the homes were built.

That doen't look promising. Since the houses are "stacked" on the lot I think you probably have a problem. My guess is that they cannot be separated.

[Guest mikedwood]

I don't know about the adding on part but it's my guess that an easement for you to use the other houses driveway would need to be recorded.

I think the wacky part about that set up is you probably won't be able to find a bank in the land to finance that place because of the situation. If you need financing that is. And if you don't and buy it cash up you may have a heck of a time getting rid of it if or when you decide to sell.

Unless I read it wrong and you do in fact have road frontage. If that is the case I think the issue will be you will have to get your driveway put in for a bank to finance it. It would seem to me that the agent my have misunderstood something and the builder probably doesn't have the money to make you a driveway on the cost of the house.

What was the builder thinking?

[Guest milkman]

I am not a lawyer, I am a paralegal, I cannot give legal advice, other then to say you need to take all of your paperwork and get to an attorney ASAP.

Lease/purchase is a tricky beast, find a real estate attorney it will cost something, but if you invested a lot in the house it will be worth it. I don't even know what options you have but a RE atty. will.

[Guest 6.8 AR]

I am not a lawyer, I am a paralegal, I cannot give legal advice, other then to say you need to take all of your paperwork and get to an attorney ASAP.

Lease/purchase is a tricky beast, find a real estate attorney it will cost something, but if you invested a lot in the house it will be worth it. I don't even know what options you have but a RE atty. will.

After seeing that picture, that's probably a good idea. It's still workable, though.

[Guest HvyMtl]

Milkman is correct. Gather all paperwork, and get an attorney involved, NOW. Do not wait...

[strickj]

Why not buy both houses and rent the front one to pay your mortgage?

[Hitower]

I was talking to my boss today and found out he is friends with my landlord. After he called and talked to him it turns out he can sell us the house and is going to do so. Thanks for the info everyone, luckily this one got fixed the cheap way.

[Smith]

I was talking to my boss today and found out he is friends with my landlord. After he called and talked to him it turns out he can sell us the house and is going to do so. Thanks for the info everyone, luckily this one got fixed the cheap way.

Before you sign any more contracts, you more than likely have other issues that will raise their ugly head if you do ever decide to sell. A house without proper right of way or road frontage are tricky things. You will also want to make sure the improvements you made are DEDUCTED and and not added into the value at the sale. Again all things a good real estate layer can guide you through.

[Raoul]

Before you sign any more contracts, you more than likely have other issues that will raise their ugly head if you do ever decide to sell. A house without proper right of way or road frontage are tricky things. You will also want to make sure the improvements you made are DEDUCTED and and not added into the value at the sale. Again all things a good real estate layer can guide you through.

I'm not sure about zoning where you are, but you should definitely find out if there is a zoning department and if there is if this property meets current zoning code.

It could keep you from getting a loan.

Also, +1 of the access issue. It's a BIG deal.

[JReedEsq]

PM sent

[Bubba0031]

I'm not an attorney but I am a City Engineer and have seen this sitution before. The property (at least in most jurisdictions) will need to be sub-divided and as milkedweed said you will need an access easement since the property won't have frontage on a public street. In will also need to have a seprate water and sewer connection from the house in front of it. The sitution you have is what we refer to as a flag pole lot.

[Guest 1817ak47]

I looked at a house about a yuear ago. owner finacing it said. I crawled everywhere under the house, there was some rotton wood from either termites or excessive moisture. basically what it was was a house was bought and they did the bare minum to make a decent livable again. took my pocket level to a couple of windows and they weren't even nearthe center. and the hardwood floors weren't even do to structural damage. the boors on the sides of the roof were also kinda rotted too

moral of the story. this house likely would qualify after ahome loan inspection from a bank due to said issues.

I have later met and worked withteh person who has that house, it was put up for rent, he told me the guy tries to talk him into "buying" it