I have a lease/purchase agreement with over $10k invested, can leesor claim bankruptsy and void lease?

I doubt very seriously that he or a trustee in bankruptcy could reject a lease or lease purchase agreement. The rights of landlords in bankruptcy to reject executory (i.e., yet to be fully performed) leases are much more limited than the rights of bankrupt tenants to do so.

If you continue to pay the rent I believe that the landlord cannot terminate your lease insofar as it gives you the right of possession so long as you pay the rent and fulfill any other obligations the lease imposes on you, such as payment of real property taxes, maintenance of the premises, provision of property and casualty insurance, etc. He probably can also be compelled to deed the property to you in fulfillment of your purchase rights upon your fulfillment of the requirements of that part of your agreement.

What he may not be obligated to continue to perform are obligations that might be imposed upon him by the lease that would burden the bankrupt estate on a going-forward basis to the disadvantage of his unsecured creditors -- such as, for example, an obligation the lease may impose upon him to provide heat and power to the premises at the landlord's expense. You might have to shoulder those types of expenses yourself, if the lease did not already impose them on you, as part of the cost of retaining possession under your lease and ultimately exercising your right to purchase.

You should obtain the advice of your lawyer and not rely upon any of the foregoing as legal advice, which it is not offered as or intended to be.

You need to get legal advice quickly. Preferably from a local attorney that specializes in real estate in your state and is familiar with bankruptcy laws. I can be of general assistance but would need to know what state the subject property is in.

To answer your question, the lease would be subject to bankruptcy court approval. You would become a creditor of the bankruptcy (seller's) estate and the bankruptcy trustee could (and probably would) void the purchase agreement. It would depend on the judge and the type of bankruptcy (is this a chapter 7, 13, 11) and the amount of equity in the home. How much is the house worth? Did you record anything in the land records in the county where the home is located? If I were you, I would do this immediately, to put the world on notice of your claim.

Remember anyone can file bankrutpcy and contracts can be broken in a court particularly bankruptcy court. So get an attorney, fast.

You were lucky that you got advance notice. If you pay off and take possession now, the Bankruptcy COurt can Still take the house back within 120 of the seller filing bankruptcy (not fair but that is the law.)

SO get an attorney, get an attorney, get an attorney FAAST!!!!

Good luck and email me if you need more help.

Get an attorney right away. You need to find out before he files what the laws are in your situation. There is also the question if he has any loans that the property could be considered collateral for depending on the BK he is filing - chapter 7 or chapter 13. At least you have a written notarized agreement which should hold some weight. Is this agreement on record in the county court as any other property record would be? In Ohio, it is always recommended to have the agreement on file with the property records.

Don't hesitate as you already have so much invested in this property already. Good Luck.

Yes, get an attorney. Try to salvage this "purchase". Ask the attorney BEFORE you file this contract at the courthouse. Filing it might trigger the due on sale clause of the underlying mortgage.

On a "purchase" made by lease purchase, lease option, contract for deed, owner wrap, etc there is always a risk that the seller's or buyer's situation may change after putting in alot of money, but before ownership transfers.

If a buyer cannot get a loan to buy a house at the time of possession, then they should rent a house until their financial situation changes and they can buy a house.

You are very fortunate, in that you did get advance notice - maybe you will be able to save it.

Note one thing. The seller was willing to violate his contract with his mortgage company to do the lease purchase contract with you (it was to HIS advantage to violate the terms of his mortgage) why wouldn't he violate the terms of the contract he has with you, when he needs to for his advantage?

Yes, he can file. Whether or not he can win depends on a few things. Though you haven't signed a lease, you do have a verbal agreement for a month-to-month lease. That's in his favor. You are withholding rent in order to get repairs completed, but you have no lease agreement that would enforce his performance. That's also in his favor. You are still living in the house, and as long as you live there, repairs or not, you should be paying rent. That's in the landlord's favor. So I would not withhold rent in lieu of the repairs. Give him a thirty day notice on the last day of May, pay your rent through the end of June, and find yourself a new place.