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]

Whether he is living in the property or not is largely irrelevant. He is the lessee according to the lease and he has not paid the rent. That is a clear violation of the lease. I would suggest discussing how to terminate his rights as the lessee with your attorney. Again, I would have started the process as soon as he was late.

Good Luck,

Mike