Obligations of "Life Lease"

[Anderson2002]

My jurisdiction is: Wisconsin, USA

In 1994 we purchased a home in Wisconsin; the purchase included a 'life lease' for the individual who was residing in the home at the time of the purchase (we do not live in Wisconsin; we live in Washington State).

We have been approached by a commercial business to purchase the home; what are our obligations of the 'life lease'? If we sell the home in Wisconsin what are the steps we need to take to satisfy the 'life lease'?

 

[dee_dub]

Without knowing the exact terms of the lease, I would speculate that the person has the right to live in the house for life. You are correspondingly obliged to let them live there. A "life estate" is not an uncommon interest in property. If you sell the home, you sell it subject to the life lease, just as when you purchased it.

You might be able to apply to court to have the life lease severed or terminated. You would probably end up paying the person some cash value equivalent to what the lease is worth, whatever that might be. You should check with a local real estate lawyer.