Are there ways out of a lease with option to buy.?

Question

I am on an 18 month lease with option to buy, put 4K down. The 18 months are up at end of august this year. I can not get financed. I have emails where the landlord agreed to do the house on contract and I have been told by 3 lenders had that been done they could have approved me for a refinance after 12 months of payments. After I found this out is when I found out the difference of lease with option. With me not being able to get the finacing does that cancel the option? Paperwork signed was lease for 18 months, Option to buy with 4K down henging on financing and then a purchase agreement. Any help would be great.

Answer 1

If you actually made your 4k deposit contingent on the ability to finance, then I would think you were entitled to walk away and keep your money. Also if it is in writing that he was going to record the contract (this is what I assume you are talking about) and he did not, I would think he breached the contract which also releases you. If you are not concerned about your money the seller will likely just let you out of your contract, if you are you should seek the advice of a qualified professional in real estate law. You might also call a local real estate broker as he will be familiar with what your local law says regarding financing contigencies.

Answer 2

It's an option, which means you do not have to exercise the option.  However, depending on the language in your contractual agreement, you may end up forfeiting your $4,000.

Seek legal advice with a copy of your agreement in hand.