RentToOwn-HouseFinder.com

Can a land owner in a lease option agreement change their mind about selling?

As a land owner with renters who are in a lease option contract with us - can we legally change our mind about selling the house, refund their money, and keep the house as long as we exercise the option before they agree to purchase? What kind of contract verbage do I need to use to include the "change of mind" option? I understand the suggestion to seek legal cousel but that is not my question. Neither is the opinion that I dont need it. I would really appreciate an answer to my question.

Public Comments

1. not that I know of as it is a contract to sell. You do need to know the vast majority never follow through with the contracts from the renters side
2. As long as that change is covered by the option, yes. Lawyer needs to review any such clause/usage.
3. It depends on the contract. Most states do not promulgate any standard form for these types of transactions so you better go see a lawyer.
4. You need to get a local RE attorney to write that up. It is not a DIY project. Honestly though, the odds of the renter exercising their option are almost zero. Very few people actually improve their credit enough to qualify for a loan. If they do not qualify at the end of the contract (usually 2 years) you get to keep the house and the money, pretty good deal for you.
5. The key is in your own question... "..lease option *contract*.." You may ask them if theyd be willing to take their money back (and as other answerers stated the renters rarely follow through with the option) and then as long as both parties agree, you CAN break the contract. However...if they still have it in their heads they might want to purchase the house one day, there is no way to break the contract. If you tried, they didn't agree and you went to court over it, you could potentially lose more money than what they paid for the lease-option. If you choose to discuss this with them, they may be more than happy to have their money back. (With the economy the way it is, they might need it.) Simply talking it over with your tenants might be the best option. If they don't agree, you're out of luck - either follow through with the sale or lose extra $$ (and potentially be forced to sell the house).