6 Years In My Rent To Own And They Throw Me Out---Can They Do That?

By
Real Estate Agent with The Pamela Madore Group 573760

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



Posted by

 
 
Pamela Madore
 
Pamela Madore
The Pamela Madore Group 
Keller Williams RealtyAmarillo
3955 S. Soncy
Amarillo, TX 79119

806-290-1920 Cell
pammadore@kw.com 
http://pamelamadore.com
 
 
 
 
 
 
 
 

 

 

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Topic:
Home Buying
Location:
Texas Randall County Amarillo
Tags:
lease options
rent to own
lease purchase
the pamela madore group

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Rainmaker
521,568
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Pamela,
It seems so simple and like an ideal solution to “rent to own” but so, so often it goes south. People need an attorney up front and the language to be able to cure a default.

Nov 15, 2015 09:13 AM #1
Rainmaker
993,821
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Get on a RE attorney calander ASAP.

That has to do with contract terms, completeness, and motivation. We are just realtors/brokers.

Nov 15, 2015 09:14 AM #2
Rainmaker
215,954
Pamela Madore
The Pamela Madore Group - Amarillo, TX
Team Work Makes The Dream Work

In my area in Texas at one point a couple of years ago there wasn't an attorney in Amarilo that would even touch one.  I have since heard there is one attorney that decided to take on the risk  Texas does this differently.  :-)

Nov 15, 2015 09:51 AM #3
Rainmaker
797,359
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Pamela - Yes, consulting with an attorney would be best.

However, I will say that if the buyer couldn't secure financing at the time they were scheduled to purchase the home, I believe that would be cause to void the rent-to-own contract.

Nov 15, 2015 10:51 AM #4
Rainmaker
1,528,327
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Pamela Madore Anyone, and I mean, ANYONE that becomes involved with a 'Rent-to-Own Property is asking for trouble, even with attorney representation. These purchases are full of problems and my advise is if the buyer cannot qualify for a conventional, or even an FHA loan, then they are not qualified to be a homeowner yet.

Nov 15, 2015 11:25 PM #5
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Rainmaker
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Pamela Madore

Team Work Makes The Dream Work
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