Should I lease an air-condition for my home? SCAM ALERT!

Real Estate Agent with RE/MAX Compass, formerly RE/MAX WHP 0524642


scam air condition

This morning I spoke to an older woman (74) who is ready to sell her home so she can move to a nearby retirement community. There's just one problem. She's involved in a scam that will very likely prevent it.

2 years ago she signed a contract on a 10 year lease...for an air-condition. A brand new unit (if she bought it) costs between 3-5k. Unfortunately, she signed a binding agreement at $220.00 a month for 120 months. She can terminate the lease at anytime for $7,500.00. Over 10 years she will have paid $26,400.00.

I am still learning more about the situation and have additional questions...

1. What happens at the end of the ten year lease? Does she get to keep the unit? 

2. Considering the unit is "in her backyard" what happens if she fails to make payments?


No home buyer would assume this ridiculous lease and even if they did, the lender would never permit this added financially liability to the loan. 

Posted by


Greg Nino
, Houston area Realtor®.
Helping residential buyers, sellers and tenants 7 days a week.
Available @ 832-298-8555 

RE/MAX Compass (Formerly RE/MAX WHP)




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Jeanne Gregory
RE/MAX Southwest - Sugar Land, TX
The most important home I sell is YOURS!

Holy crap!  Something sounds really illegal!  Hope an attorney can help her!

Oct 23, 2016 02:39 AM #1
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Holy moly batman, while there may be nothing illegal about her contract it is so wrong on so many levels.

I just they called it a lease and not financing because that kind of interest rate would certainly be illegal.


Oct 23, 2016 04:05 AM #2
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Wow what a disaster & I'm sure this is probably one of the nicest ladies you'd ever want to meet. You'll get to the bottom of it. 

Around here if she doesn't make the payments they literally cut the thing out of the backyard.

Oct 23, 2016 04:48 AM #3
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Well, the take-away is she contacted you for whatever reason, and you unearthed this scam.  And she sure sounds like she needs someone to protect her best interests in a real estate transaction!  Poor dear,  apparently,  she can't do simple math.

Oct 23, 2016 06:33 AM #4
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Greg Nino

Houston, Texas
Providing Real Estate Advice 7 days a week!
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