Lease Option Question

[N/A N/A]

I had a verbal agreement with a purchaser. He paid the non-refundable option fee. I sent him the contract and he did not sign and return it. He never paid a lease payment. Approximately 2 months later he contacted me stating that he wanted his money back or he wanted to sell the house to a cash buyer.

When I wrote the lease option I wrote it in 2 steps, a lease and an option. There were no rent credits to be given.

Basically my question is - Is it a fair settlement to offer him a 50%refund of his option fee?

[Michael Rossi]

I would keep ALL of his option money and insist that he immediately bring the rent current before he can sell the property. Furthermore, demand that he immediately sign and return the documents. If he refuses to do all of this, I would immediately begin eviction proceedings (which is what you should have done the minute the first lease payment was late).

Next time, you need to better manage the whole process. Always meet in-person to collect the money (IN CASH) and sign the paperwork. Also, follow the lease to the letter. If the tenant doesn't pay, EVICT THEM IMMEDIATELY.

Good Luck,

Mike