Terminating a Rent to Own with a Twist

Terminating a Rent to Own with a Twist by Gary (Wisconsin) on January 25, 2012 @14:20

I'm submitting this question to get all possible points of view.

We are currently in a rent to own contract on a house. We know the terms of the contract and will follow all of it. However, this is the first year of the contract and we have run into some major issues with the house.

We had this place inspected but some health hazards have come up from places no one had a chance to see.

The main bathroom has extensive cracks in the drywall. Whomever did it, didn't know how to seal drywall. Needless to say, there is a high probability of mold on the inside of the walls. It wasn't caught as the previous owners painted it over to hide it.

The downstairs is leaking water from the foundation in winter causing the wood in the fruit cellar and the trim and paneling of the downstairs bathroom to saturate, rot, and mold. The location of the leak is behind the shower stall and will require taking out the shower stall, the walls of the bathroom and dismantling the fruit cellar.

The electrical has been deemed a fire hazard and illegal requiring nearly the whole house to be rewired.

The question is this: How do all of these health hazards impact the ability to terminate a lease and the subsequent funds that were paid to enter into the agreement? Needless to say, there is no way we are going to fund $20-$30 thousand worth of repairs in a place we are leasing. The hazards also are going to block any chance at getting a loan for the place.

We are expecting to be released from the lease and to lose the funds. I am interested in feedback.

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Re: Terminating a Rent to Own with a Twist by Gary (Wisconsin) on January 25, 2012 @14:23	[ Reply ]

I forgot to add that we have also found asbestos under the carpet in the form of really old flooring that was repeatedly covered over.

Re: Terminating a Rent to Own with a Twist by Greg on January 25, 2012 @14:45	[ Reply ]

It all depends on what the contract you signed says. However, if the electrical is truly as bad as you say I would not let my family stay there. Greg in Phoenix

Re: Terminating a Rent to Own with a Twist by Bryan (Ia) on January 25, 2012 @16:41	[ Reply ]

Your beef is with your inspector.

Re: Terminating a Rent to Own with a Twist by Jake on January 25, 2012 @16:53	[ Reply ]

Typically, houses offered for rent to own do not qualify for traditional financing and suffer from the quality defects you describe. You may move at the end of your lease. However, none of the things you mention qualify for breaking the lease without penalty.

Re: Terminating a Rent to Own with a Twist

Re: Terminating a Rent to Own with a Twist by Anonymous on January 26, 2012 @02:42	[ Reply ]

Rent to own deals are bad business for both parties involved. No legitimate bank will enter into any kind of rent to own agreement. A banker I know has been in banking for 25 years, and told me to never get involved in rent to own deals on real estate. No legitimate bank wants anything to do with rent to own deals. You buy or you rent. Buying or renting are two totally separate concepts. I would lose the funds and walk away. Learn from this.

Re: Terminating a Rent to Own with a Twist by Anonymous on January 26, 2012 @02:45	[ Reply ]

It all depends on how the lease was written. You need to talk to an attorney. You may be able to get out of it with no penalty or you may have to forfeit all of your money. If you signed a slip shod contract you may be screwed. You should always have an attorney look over that type of contract before signing. The elctric is the only big concern and maybe the owner will fix if you stay as a renter only. The abestoes is of no concern because it is covered up. Abestoes is only bad if you were tearing up the floor and it is airborne. Black mold is actually very rare and everyone assumes when they see mold of any kind that is is bad and this is not the case. Majority of mold can be eradicated with good scrubbing.