Lease/option to buy

[butterfly3]

Jurisdiction

Alabama

My husband and I own a home that we were trying to sell and we thought we had a buyer. We signed a 3 month Lease/option to buy with someone with no money down on April 25, 2016.This person was suppose to pay $500. a month starting on the 5th of May, 2016 and exercise their option of $1000. by the 25th, of July 2016. This person paid rent for the month of May but has not paid June,July or exercised their option. I consulted with a lawyer and she wrote a letter for me to post on their door to cure default within 30 days and to exercise their option by August the 10, 2016. My question is: If they pay the rent and give us the option money, are we bound to the contract to let them stay there until their loan is approved and processed? Which they have not even started yet. Can we not give them a termination of lease and or a non-renewal lease with certain days to vacate premises after the thirty days? They have breached contract by not paying and by refurbishing inside of home without our permission as the contract states. We have been through a lot of aggravation and worry we don't want to wait another 3- 6 months to see if they come through with their loan. Also, I don't really want to evict them unless there is no other way, which will cost a lot of money and could be a long process.What can we do???

 

[army judge]

I wouldn't worry about what hasn't happened.
On August 11th, after you still haven't been paid, simply file for an eviction.

It should be evident that the deadbeat has played you and hubby like a piano.

 

[Fallen]

I consulted with a lawyer and she wrote a letter for me to post on their door to cure default within 30 days and to exercise their option by August the 10, 2016.

My question is: If they pay the rent and give us the option money, are we bound to the contract to let them stay there until their loan is approved and processed? Which they have not even started yet. Can we not give them a termination of lease and or a non-renewal lease with certain days to vacate premises after the thirty days? They have breached contract by not paying and by refurbishing inside of home without our permission as the contract states. We have been through a lot of aggravation and worry we don't want to wait another 3- 6 months to see if they come through with their loan. Also, I don't really want to evict them unless there is no other way, which will cost a lot of money and could be a long process.What can we do???

You're asking strangers to give you response when we haven't seen the contract. The option exercise date is in August and you also say it was a three-month fixed term lease. I don't see them curing the default; in fact, I suspect they had no intention of exercising it (they aren't obligated to). So little money is involved that it's startling and suspicious, but even if purchase price is only $30,000, I'd have asked for much higher than low-end percentage for the option fee. ... never mind that a lease with option to buy is usually a multi-year committment, not three months/so little time before deadline to exercise option. If they couldn't get a loan 90-120 days ago, why would they be able to get one now? You know their credit history, so ... You did run a credit report and check out their rental history and such, right? If not, I get no pleasure from telling you shouldn't have rented to them even if you'd wanted to hold onto this place as a long-term investment.

Based on question, presume agreement gives them months after exercising option and paying option fee to close on loan? Only you know what it says.

I also don't assume that you failed to ask the attorney you consulted to explain the deal you made/signed. I cannot imagine unlawful detainer filing fee is high, and you should read up about the process in AL as well as perhaps even attend a day's worth of unlawful detainer cases in court if you plan to go DIY. Attorney fees should be minimal if you choose to use one. It also oughtn't be a long process in AL.

I suggest you don't take this route again unless and until you are intimately familiar with how the deal should be structured. That means knowing