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When a home rent-to-own contract is void, who does the down payment go to?
My husband and I went through a realty company to sell our house. There was a couple that really wanted it but didn t have the best credit yet so we agreed to allow them to rent-to-own our house. The couple had 2 years to purchase the home and if they didn t their $9,000 down payment that was given to the realtors (theirs and ours) would not be given back to them. The couple lost their jobs and was evicted from our home right at the 2 year mark making the contract void. Where does the $9,000 go? When we ask our realtor she states that it doesn t go to us. The contract doesn t state the realtors keep it. Anyone have experience with this? Help!
10 Answers
- Nuff SedLv 77 years ago
Sounds like they bought an "option to buy", but not at all clear what "two years" has to do with anything. If they bought the house, the $9,000 would go toward the purchase price. If they defaulted prior to 2 years, then the sellers get to keep the $9,000. So, in any case, it sounds like it was not a "deposit" but rather a fee paid to the sellers for the privilege of having their house off the market for two years. The realtor gets only the portion that was specifically earmarked for them in the contract, as otherwise you keep the entire thing and they have no proof of any other "agreement". Think of it like a "sale" that fell through, meaning the realtor got no commission.
As I mentioned elsewhere, it's impossible (and pointless) to try to interpret a contract without seeing the entire contract and knowing more about its business context (e.g., other brokerage agreement, prior course of dealing, local custom, etc).
Take it to a local attorney for a definitive interpretation of your rights.
- realtor.sailorLv 77 years ago
So the Realtors have been holding the $9,000 for two years? Presuming the buyers were able to purchase the home where would the $9,000 have gone? The Realtors shouldn't be holding the money without an agreement as to who gets the money and when. Absent any further information or agreement the $9,000 should go to you as the buyer defaulted.
- Anonymous7 years ago
If they were evicted prior to the expiration of their purchase option, then the contract is void and the money goes back to them (the tenants/buyers). Even if occupancy is not specifically mentioned in the contract, it is certainly an implied term.
The other side of the coin is that you are no longer under an obligation to sell to them at the agreed price, and hopefully values have risen a bit and you might be able to sell for more that you were locked into by the contract.
- real estate guyLv 77 years ago
it should go to you.
The realtor can't just give the money back to the buyer without you signing a lease.
You need a lawyer NOW to help you on this.
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- Anonymous7 years ago
as luck would have it I discussed this with my realtor...they bought the house on a contract for deed..using realtors , seller pays commission...9 thousand is 6% of 150K....realtor got paid...you got 2 years worth of ''rent'' ....you got the property...that's probably the situation......that's the basics...buy calling it ''rent to own"" you might owe them equity....calling it a lease option is smarter.....''evicted'' suggested they couldn't make the monthly payments,,,lost jobs so can't get loan...sounds about right...probably a fake question....why would you evict at exactly 2 year mark
- Steve DLv 77 years ago
Most rent-to-own escrow accounts go to the seller when the deal falls through. If your contract is silent on this, youwill have to consult a lawyer (which you should have done prior to even signing the contract - 80% of rent-to-owns do not go through).
- SlickterpLv 77 years ago
It would depend on the contract. It doesn't go back to the buyer, that seems for sure.
- Beverly SLv 77 years ago
What does the contract say about it. If it is realtor fees they get it. If it says earnest money it goes to you.
- troLv 77 years ago
the seller
unless you have in your contract that it is refundable, it goes to the owner(seller)