Landlord did not own home at time of contract signing

Status
Not open for further replies.

kryss

New Member
State: Florida

We did a lease/purchase option on a very nice home by a man who claimed to own the home. We paid first, last, security and option deposits totaling $6k and signed a two year agreement with a set purchase price. The agreement stated that in addition to our option money, every penny of our monthly rental payments over the two year period would go into escrow towards our down payment on the home at the conclusion of the contract.

A few months before the contract expired, we found out that the house would not appraise for even half of the agreed upon purchase price, due to the current market. Therefore, we were not going to be able to obtain financing, thus losing all the money we had paid in. At the same time, we also found out that when we actually signed the contract and paid the money nearly two years before, the man did not even own the home. It wasn't until over 2 months later that he actually purchased the home. At the time that we initially saw the house, it was shown to us by a licensed realtor and himself. He and the realtor both acted as if he was the actual owner.

In addition, public records show that according to his mortgage agreement with his lender for the home, he is not allowed to rent out the home at all. It must only be used as a second home (he is out of state) or remain vacant. It cannot be inhabited by any persons other than himself or it will be considered a default by him on the loan.

Does the fact that he did not own the home when the contract was signed and the money taken make this a null and void contract? Is this considered rental fraud, even though he actually went on to purchase the home, after he had our money and committment? Is this something we should/would pursue further?
 
Status
Not open for further replies.
Back
Top