Suing a Tenant for Breaking Contract (sales, real estate, renter) - Atlanta - Georgia (GA) - City-Data Forum

jeblevins · 06-03-2009, 12:40 PM

We had a tenant that had signed a lease purchase contract on our house. At the end of the term (when they were to buy the house), they started acting a little weird. They made a couple of demands (including lowering the price), which we actually agreed to because we REALLY wanted to get rid of this house. Even after all that, they ended up walking away from the closing table for no reason other than they changed their minds. They LITERALLY left us sitting at the closing attorney's office! Worst of all, they bought a house for more money in a neighborhood up the street! How strong of a case do you think we would have if we took them to court and should we go to regular court or small claims? Could we sue them to recoup the depreciation of our house in that amount of time on top of everything else?

noah · 06-03-2009, 12:49 PM

I think recouping the depreciaton is a no go.

Did you not collect earnest money. This is why you collect earnest money so if they walk once all conditions are waived you get to keep something for keeping the house off the market. That said, I have heard of cases (state specific) depending on the state where sellers can hold buyers to a binding contract.

Was this a rent to own or strictly a sales contract? Sounds like a rent to own so you should have been collecting extra rent each month to go towards the purchase. I guess we would need more details.

Tristan840 · 06-03-2009, 01:50 PM

I thought on lease to own type contracts the person still has the option to opt out of purchasing if need be. Collecting earnest money to me wouldve been a very important part of the whole deal too.

noah · 06-03-2009, 02:31 PM

Exactly. Lease to own contracts can vary widely but usually would include the option to buy and if the buyer did not they would usually loose the rent premium they were paying that was to be used toward the purchase.

Quote:

Originally Posted by Highriser987

I thought on lease to own type contracts the person still has the option to opt out of purchasing if need be. Collecting earnest money to me wouldve been a very important part of the whole deal too.

jeblevins · 06-03-2009, 07:55 PM

The only way they could have backed out was if they couldn't qualify, which they did. We did collect earnest money but ended up having to sink a LOT of money into the house after them because of how they left us high and dry. The contract states that we can recoup fees for re-listing, months that it sat empty, etc......

mmenomen · 06-04-2009, 10:09 AM

I would definitely consult a real estate attorney on that one to see if they think you have a strong case.

BobKovacs · 06-04-2009, 10:34 AM

If you're looking for a substantial amount of $$, you can't use small claims court- I don't know the exact amount here in GA, but it's usually under $5k, hence the term "small claims". As said above, only a lawyer can tell you if you've got a case.

noah · 06-04-2009, 10:54 AM

You spent a lot because of the condition they left it in or because of empty months? Could you not put another renter in there and ride out this market. Sounds like you may have a contract thats in your favor, may want to speak with a real estate lawyer.

Quote:

Originally Posted by jeblevins

The only way they could have backed out was if they couldn't qualify, which they did. We did collect earnest money but ended up having to sink a LOT of money into the house after them because of how they left us high and dry. The contract states that we can recoup fees for re-listing, months that it sat empty, etc......