What is my legal exposure?

Question

Took $1300 security deposit. Plus Nov. rent $1300 in cash. The tenant has changed the locks as agreed. Purchased paint and flooring as agreed. I can now sell the house but the tenant can’t stay. I told them they could move have access now and they did. Less than 24 hours. I have an above market offer so what Is my legal exposure if I attempt to get out of verbal contract. How much is going to or could it cost? What should I do? I have a great offer to dump the place. Renting was a last reso

Marcus Geiser · Answer

Ok, so I apologize to everyone. The actual situation is as I am the renter. The landlord wants to sell the property he previously could not sell. I also had an option to purchase.

Nathan Gesner · Answer

You took the money and allowed them to change locks so you've legally rented the property. It doesn't matter if it's verbal or not; you've rented the home and the renter has rights to the home. I would personally reach out to the renter and see if they're willing to terminate with a full refund, compensation for any expenses, and maybe even a little money on top to compensate them.

Why would you try selling the property when the renters have spent thousands to make this their home? This is a terrible way to treat people and it gives Landlords a bad rap.

Ellis Dudley · Answer

Following! Thanks guys

Bjorn Ahlblad · Answer

@Marcus Geiser your biggest problem is not the 3k he paid you or a few grand he paid for paint and flooring. Your biggest problem is if he refuses to leave. You have no grounds to evict, there is no written lease to protect you. His protection is that y'all are in a tenant friendly state. He holds some powerful cards, you need to recognize that and negotiate accordingly with him. Keep us posted. All the best!

Jackie Cramer · Answer

If the sale is too good to pass up, try to negotiate a return of his monies along with a sum to be determined  for getting a new place.

check with you tax advisor as perhaps the relocation $ is extensible and reduce any capital gains tax. Is it worth 5 or 7k to get the sale done?