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

johnkord

Inspired Forum Member
Registered
May 6, 2008
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Macdonell Avenue, Toronto, Ontario
#1
 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
 

smmcguire

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Registered
Jan 7, 2008
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#2
Sorry no one has answered your post. In real estate transactions you have to sign a mutual release with both seller and buyer, regardless of how the conditions are written.



In an RTO contract, I would reference a lawyer for a few bucks and have something drafted that would indicate a failure to live up to the conditions of the contract or something to that effect, and send it registered from your lawyers office.
 

jeano

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REIN Member
Dec 20, 2011
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#3
I agree in the above comment, if your agreement stipulates that if your client opts out... I would refer you to Shayle Rothman a lawyer in Markham and also a REIN member, his number is 905-477-5151