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Rent To Own Contract Breach in PA - Rules?

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Mike Watson

California, Pennsylvania

Aug 03 '13, 06:14 PM


I have a bad Buyer that I am in a RTO contract with. He's since breached the contract over an issue other than late payments. I gave him a 10 day quit notice today. What are the differences of a RTO contract breach eviction and a reg. eviction?



Michael Johnson

Real Estate Investor from Parker, Colorado

Aug 03 '13, 10:14 PM


From what I understand an RTO contract should be separate from the lease. The tenant should be under a normal lease, for which you could evict, while the RTO contract spells out the terms of purchase. A breach of the lease should trigger a clause in the RTO contract causing forfeiture of any monies applied. Now, this is assuming that the RTO contract was constructed correctly. If it wasn't then you'll probably need to contact an attorney to help you. So, to answer your question, there should be no difference between an RTO eviction and a 'regular' eviction. They should be one and the same. I'll look forward to reading any corrections to my understanding, of course. :)



Mike Watson

California, Pennsylvania

Aug 04 '13, 12:26 PM


Thanks Mike. I am going to talk to an attorney this week. They are not paying the water bill, which the contract states MUST be kept current. Not sure how long they can be allowed to stay in the property w/o running water. I am learning ALOT from this experience...



Wayne Brooks

West Palm Beach, Florida

Aug 04 '13, 02:48 PM


This is definitely not a do it yourself deal..Your RTO agreement could have actually given the buyer an equitable interest, which requires something more like a foreclosure than an eviction.



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