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speedingpenguin

1 year after, the seller asking if they get the option $ lol

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I'm curious how others would handle this situation. It's more a question of "how to say it" I guess, but here's the situation.

 

I assigned my agreements with the seller to a tenant buyer last year. The assignment, signed by both the tenant/buyer and the seller, releases me of any further liability in the transaction (using the MC contracts).

Here we are 13 months into the lease and the tenant/buyer wants to leave (And of course now think they should still get their money back), they've caused some damage to the property, and the seller who's been communicating through email with me basically said "I assume since they didn't buy that we get the $$$ they put down so we can repair the property", to which I replied that as per the agreement, the tenant/buyer is the one responsible for any repairs or damages.

The reply I got was pretty much "ok so what happens to the money?"

 

I'm happy to help them find another person for the property, but what would be the best way to tell the seller that the option money was my payment and they won't be getting it? I want to sound professional and polite and whatnot, but make it clear that they approved the tenant buyer and the terms of the agreement so it's not my responsibility at this point.

 

Any advice? :)

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I'm curious how others would handle this situation. It's more a question of "how to say it" I guess, but here's the situation.

 

I assigned my agreements with the seller to a tenant buyer last year. The assignment, signed by both the tenant/buyer and the seller, releases me of any further liability in the transaction (using the MC contracts).

Here we are 13 months into the lease and the tenant/buyer wants to leave (And of course now think they should still get their money back), they've caused some damage to the property, and the seller who's been communicating through email with me basically said "I assume since they didn't buy that we get the $$$ they put down so we can repair the property", to which I replied that as per the agreement, the tenant/buyer is the one responsible for any repairs or damages.

The reply I got was pretty much "ok so what happens to the money?"

 

I'm happy to help them find another person for the property, but what would be the best way to tell the seller that the option money was my payment and they won't be getting it? I want to sound professional and polite and whatnot, but make it clear that they approved the tenant buyer and the terms of the agreement so it's not my responsibility at this point.

 

Any advice? :)

 

 

Hey Chris,

 

I don't think the Assignment of Agreements Form could be much clearer. What reasoning is the T/B giving that they deserve their money back? How much damage are we talking about on the property? Wonder how high of a deductible the seller has on the property (Landlord policy I would assume)?

 

Look forward the rest of the forum commenting on this...

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Been there, done that. Seems even with signed agreements, clear and concise as they are, someone is always going to stamp their feet and make demands contrary to those agreements. From a legal standpoint you're on firm footing. But we're not just about legalities. It's always best to treat folks with respect and professionalism. After all, we're in this business for the long run. So, what to do?

First, I'd remind the homeowner about the assignment and exactly what that means. But then I would offer to assist him with another Rent-To-Own, but offer him half the option money you collect to appease him. Not much else you can do. If that doesn't fly, wish him the best and move on. The longer you allow yourself to be sucked into this, the more difficult it becomes to untangle yourself from it.

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Glad to hear this isn't unheard of, haha. I wish the transaction had worked out better but what can ya do? background check and references were good, sellers liked 'em and said "lets do it!", but I guess life happens!

 

Gonna try and find them someone else for the house... hopefully we get someone good!

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I've been toying with the idea of offering owners 1 months rent as a "deposit"

to hedge against damages (to cover the insurance deductible if needed).

 

Seems like it always comes up & frankly, it's not that strange of a request

for an owner to ask. Then if the tenant buyer buys, that deposit $ would

come back to me (in theory).

 

JvM

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Nothing wrong with putting a deposit in the lease agreement, after all it is a separate agreement, the seller gets a little protection if the buyer walks and the buyer gets it back when he buys so a few bucks to use when he buys. Sort of makes both feel better and removes the option money from the realm of mentally making it security deposit money

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