RENT-TO-OWN, Clarification on 3-year lease contract gone sour.

  • johnkord

    Status: REIN™ Member

    Posts: 34
    Joined: 6 May 2008
    From: Macdonell Avenue, Toronto, Ontario

      I am the owner of a Rent-To-Own property where my Tenants have the option to purchase the property at the 3-year mark of the contract. My tenants have decided to quit the contract after having lived in the property for 2 years. They have been paying regularly their agreed-to monthly rental payments, and have caused no harm to the property. They simply want to walk away from the deal. I am OK with that. My legal question is: Should I be getting them to sign some kind of legal document to indicate that THEY agree legally to NOT pursue the rest of the contract ? I simply want to be "off-the-hook" from any further responsibility to them. For example, I would not want them to come to me a year down the road saying they want to now buy the house per the original contract. What main points should such a document contain? Also, can anyone recommend a lawyer who is savvy on Rent-to-Owns ? Our mutual contract states that if they do NOT exercise their option to buy, they forfeit their initial deposit and the accumulated payments (portions of their total monthly payment) that were to be applied to their downpayment for the house at the 3-year mark. (I originally posted this in the "Ask an Expert" forum, not realizing thermos an RTO specific forum. Sorry.) John Kordowisko, Toronto
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