Scheme To Defraud
Check this out...I have house guests for 3 weeks, until they close on their new home. Previously they have been living in a house with a lease-option to buy. That contract was extended another 12 months but out of nowhere the owner upped the sale by $50,000. When they said they would not pay such price, as this was not in the contract, the owner sent them an eviction notice. They moved out and went to an attorney and the attorney said that because my guests did not send the owner a "30 day termination" of the lease-option the crook gets to keep their down payment of $4500. He has already spent 3 years in prison for his schemes to defraud many of victims. Are there any other angles to stop this crook?
SarahJay,
I would hope that your houseguests had a valid lease option contract with a purchase price set forth in this original contract. When they agreed with the owner to extend the lease option for another twelve months they should have gotten the landlord to prepare a new contract with the purchase price clearly in the contract. It would have been prudent for them to record a Memorandum of Option with the county. If the owner was reluctant to prepare a new contract then they should have at least gotten him to prepare an addendum to the original contract and have the signatures notorized and also record the addendum.
Obviously this is water under the bridge as it doesn't seem that they protected themselves in this extension. We all hate to hear of unsavory characters involved in real estate transactions. I'm sure this will be a very expensive lesson for your friends.
Dave
[addsig]
Thank you Dave. I think you are right on. It just seems that there should be a way to present this scenario in court and a judge could perhaps plainly see the man used somewhat criminal tactics (I know it may not be illegal) but with his past record it would be nice if there were laws that forbid him to make such transactions and contracts with out legal recourse from the victim.
Thank you, I appreciate your input.
Sarah