Legal Question in Real Estate Law in Maryland

Rent to Own Contract

Contract drawn for Rent to Own. Payment put down and clause put in contract for it to be non-refundable if buyer did not get financed. Buyer wanted the contract because they did not want to loose the house to anyone else. Person did not get fincanced now they want the money back. Also her lawayer says we had to have a line in the contract in caps saying Under contract does not have to buy. Is this true since she wanted the contract and sign it without any ammendements? Thanks


Asked on 8/18/03, 6:16 pm

1 Answer from Attorneys

Lawrence Holzman Holzman Law Firm, LLC

Re: Rent to Own Contract

Unfortunately, there is no way for an attorney to evaluate your question without reading the complete contract. A properly drafted lease with option to buy can have a non-refundable purchase option price (which could conceivably be expressed as a non-refundable deposit toward the purchase price). Typically that would be enforceable because that is the consideration that is paid to the owner for granting the purchase option (i.e. holding the property off the market and giving the tenant the right to purchase the property at some set price).

However, if the documents are not properly drafted, it is always possible that the language does not protect the landlord. You should consult an attorney to have your documents reviewed. Obviously, you'll have to weigh the cost of obtaining legal advice against the cost of either giving back the money, or of keeping the money and risking a lawsuit.

Good luck with this -- pls feel free to contact my office if you would like to chat about the possibility of having your documents reviewed.

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Answered on 8/19/03, 8:27 am


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