Lease Purchase Agreements
I signed a lease purchase agreement some time ago. I was financially unable to consumate the agreement at the time specified in the original agreement however no new agreement or lease was ever signed to replace the original agreement. It is my understanding if no new agreements are entered into, then the original agreement rolls over and continues on – like a month to month lease. Am I correct in that assumption?
Re: Lease Purchase Agreements
It appears you are speaking about a residential type unit. These rent to own contracts are typical where a buyer does not financially qualify for a conforming mortage so the seller puts him a lease purchase. These agreements are typically written in favor of the owner or “lessor” if this is the case it is best to review the language of the agreement and see if the money you are paying is going as rent which means you have no equity or if it is building equity against a future purchase. You will need to contact my office for further details.
Brandon Barnett
412-916-1677
All intitial consultations are free of charge.
Brandon Barnett
Brandon J. Barnett Attorney At Law
5624 Brownsville Rd
Pittsburgh, PA 15236
Re: Lease Purchase Agreements
It is true that the terms of the agreement will govern whether or not the lease will continue. I would think it will not continue because the purpose of the agreement was to transfer ownership by a certain date. The owner is likely looking for someone else to consummate the deal.
However, as a practical matter, the landlord tenant act applies and he can terminate the tenancy with 15 days’ notice to quit. After that time period, he can sue to evict.
Feel free to call or e-mail me with further questions or comments on a free initial basis.
Matthew Nahrgang
Nahrgang & Associates, P.C.
35 Evansburg Road
Collegeville, PA 19426
Re: Lease Purchase Agreements
There is no way to tell because a standard lease may roll over into a month to month lease. However, the fact there was a lease purchase agreement in place and not a standard lease no real answer can be given. I would suggest you review the lease purchase agreement for a termination date or what provisions were made for the lease only.
,