Pamela Madore
The Pamela Madore Group
Keller Williams Realty
Six Years In My Rent To Own And They Throw Me Out---Can They Do That?
Let me preface this blog by saying that I am not an attorney and the only advice I will give is to see an attorney.
This is the question that was asked:
Hello, I have a few questions and hope anyone who knows the real estate laws can answer, anyway, I'm purchasing a house from another person, we had an agreement on price and I have been making payments for 6 years, all of this with hopes I'd be able to put the house in my name and get it financed to pay the person off the balance. Well, things happened and I haven't been able to secure a Loan. So now this person wants to start over completely and make me pay starting Jan the same amount monthly and price of the house and got a lawyer to draw up a letter saying this, giving me 8 days to comply or move out. Can they do this?
My reply, of course, is to see an attorney.
If you "purchase" a rent-to-own house, generally you give the owner a sum of money toward your "down payment" whereas after a period of time you can purchase the house at a pre-set price.
The title or deed remains in the owners name and you are really nothing more than a
tenant. Tenants can get evicted for many reasons. No matter what the original paperwork says, you are a tenant.
There are laws that protect people like the person described above. Unfortunately, many times they don't have the funds for an attorney.
The law actually leans toward the "buyer" and if the seller doesn't do a myriad of things they can be fined up to $250 a day, as I understand it.
I found a couple of very good websites that explain exactly what happens in a rent-to own/lease purchase. As you will see the buyer is the one that is protected.
http://www.lonestarlandlaw.com/Lease_pur.html
http://codes.lp.findlaw.com/txstatutes/PR/2/5/D/5.077
http://codes.lp.findlaw.com/txstatutes/PR/2/5/D/5.081
If something like this has happened to you or you know someone that has had it done too start here:
https://www.usa.gov/state-consumer/texas
Personally, as a Realtor ,I won't represent a client that is the seller or the buyer. There is too much risk and responsibility involved.
ALWAYS make sure you get the deed. When in doubt, see an attorney. Or better still, use a Realtor and find a house you can qualify for. Like me.
Pamela Madore
The Pamela Madore Group
Keller Williams Realty
3955 S. Soncy
Amarillo, TX 79119
806-290-1920
http://iloveamarillo.com
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