Defending Lease Option In Court
OK here is the saga...and question.
We signed a L/O in 2002 for 200k we were the buyer.
Values in Ca have soared, now worth over 300k. L/O was for 5yrs, we exercised after 1and a half years. Seller would not sign at close, instead she got a lawyer. Here is the bad stuff. I used the Carlton Sheets L/O verbatum, lawyer looked it over said it should stand, even though it was not the standard California form.
Anyone ever had to go to court to force a seller to sell using a L/O or Sheets L/O?
We also put thousands into the property to bring it up to standards.
I started going to court over one but it got to the point that I could no longer afford to fight the seller. I have learned to not buy properties unless the seller turns the dead over however if you have the money to fight, I suggest you do. One thing to keep in mind is that if you sue him, you add in all of your costs, and I mean all. Your payments to live somewhere else if you need to, moving expenses, lawyer fees (which you most likely will not get) any money you have put into the property for repairs, and your NET profit etc. The higher the figure, the more he will probably want to settle. pghquest@yahoo.com
[addsig]
Sorry to hear about your situation, wish I had some advice. Just wanted to ask that you please keep us updated, this is very important information, and the outcome of your situation could be very valuable as a learning tool for the rest of us. We're with you - Good luck.
There was a short story I read in College called "Under the Lion's Paw" that pretty much told the same story as what you are talking about. There is nothing new under the sun, as they say. I guess the moral to the story is to have an ironclad agreement, and pre-paid legal service.
Lydia
I don't think there is an agreement out there that has not been challenged. I would (next time) try and get the deed to an escrow company for the life of the lease. That way according to the contract it is given over to you already signed.
I appreciate the support. I meet with my lawyer on Wen. afternoon to discuss options available. I will keep everyone informed. I did get somewhat prepared financially for a fight. Besides, they made my wife cry, the fight is ON!
go down to the courthouse and record an affidavit and memorandum concerning real estate to cloud the title.
even if you lose (i guess it wont happen), the seller wont be able to sell the property - then you`ve got all the chances to pay back!!!
I sued to enforce a lease option once. It was a pretty big deal so there was enough money in the deal to afford the legal fees which could easily run you $5,000 to $15,000 so you need to figure that into your calculations.
Step one-- record your lease option NOW if you haven't already done so.
Step two-- File your suit. Don't worry about getting it perfect, just get a suit for specific performance on file so that you have a docket number.
Step three-- file a Lis Pendens against the title of the land.
Now you are in a position to begin negotiating.
Are you in possession or is the seller?
What compensation did you give the seller for the Lease option.
What is the most obnoxious legal thing you could do to the seller to interfer with their use of the property? (possibly post a BIG for sale sign in the frong yard) Ask the court for permission to do it..
The trick here is to become the seller's worst nightmare so that rather than going forward with the suit they will settle. Nobody ever wins in court-- its the club, not the goal line.
mark
Just because it is not the standard CA form does not mean that it is not just as legal.
Tomorrow, get a real estate lawyer that comes highly recommended and get started. Do exactly what he says. But do ask about recording the option or at least a memoradium of agreement. You do not want the seller to get a second mortgage or to sell to someone else.
Brenda
Here is an update all.
Hired an atty, and a VERY good one. est. $5k-$25k
Title/Escrow company atty and bank atty are willing to testify for us.
The specific performance suit is filed.
I can't record, L/O not notorized...oops
A memorandum is being filed.
Negotiating is not an option, they will perform as agreed...period!
Consideration was given, some questions I cant answer since this is a public forum and I won't take the chance of giving up to much info just in case.
We are in possession and have an assignability clause.
Will give you more as this progesses. :-D