.....My Mother is in a house she no longer wants to be in. She made an agreement with her landlord to lease the house for two years. At the end of the two years, she agreed to buy the house. She gave the landlord a $5000 down payment and every lease payment she's made would be counted towards her eventual down payment at time of purchase. She has signed an agreement to purchase the house in Jan 2008. This agreement has no mention of the lease, just that she has agreed to buy the house in the future. ......She has been living in the house for three months and doesn't like the house anymore for multiple reasons (one being the wiring is bad). The only mention on the agreement for default by buyer is "If Buyer fails to perform any of the covenants of this contract, all money paid pursuant to this contract by Buyer as a foresaid shall be retained by of for the account of the Seller as consideration for the execution of this contract and as agreed liquidated damages and in full settlement of any claims for damages" . .....The way I see it is that she can back out of the purchase of the home and she'll lose her deposit. Now since the lease of the house is verbal, is it considered month to month? Does she have to give the landlord a 30 day notice? Can the landlord sue her for breaking a verbal agreement?