Not sure whether to post this in Landlord or Real Estate Law. I am trying to put a house on contract and wholesale it out. Quick background: couple with 7 kids, 1 grandkid and mother-in-law all live in the same house. They were buying this house on contract from the landlord. (I am still trying to get a copy of the contract, landlord will not cooperate, tenant can't find her copy!) They were fixing it up as they could, room by room. One night, there was a small fire in the attic caused by faulty wiring. Very little smoke damage in attic was all. Firefighters told them they would have to sleep somewhere else that night to be safe in case the fire started again. While they were gone, people broke in a stole everything of value. Electronics of course, but also copper pipe, heater, water heater, etc. Completely trashed the house and it was unlivable. They had to stay at a motel, which depleted any funds they had. The owner did not have insurance on the house and the tenants did not have renter's insurance. The owner told them that she would take off some of their rent a month, but they needed to get the materials to fix the house back up and do it quickly. These people just lost everything they had, she is working 2 full time jobs to make ends meet. There is no way they could afford to pay for these materials again! Now the owner is saying that she will take the majority of what we give her for the house and give the tenants whatever is left. She told me it stated in the contract that the landlord was not liable for fire damage to the house. But I explained to her there was no fire damage. It was vandalism and theft, which left them with no heat, no running water, broken windows, etc. Assuming the contract had no loopholes and was a "normal" contract, does the tenant have the right to more money? I at least know the contract is null and void since the house in unlivable and the landlord cannot hold them to it, although she is trying to tell them she can. Should't the landlord have to pay back everything they have put towards the house to this point? They have moved to another rental house, but are really struggling with deposits and such. We provided them with a Thanksgiving Dinner, and enough money to cover the heat and water deposit (they have been in this new house for 2 weeks with no water or heat). I really need to get this house under contract and get them some cash, but I need to be armed with info to take on this landlord. I have multiple calls in to real estate attorneys but have heard nothing back. Please give advice so I can give this family a fair shake and hopefully a lot of cash for the holidays!
