My question involves an eviction in the state of: ME
I have rent to own agreement (purchase option) on a property that I own. I went the route of having a rent to own company act as the middle man because it seemed safer for myself with this company acting both as a property manager and one who performed background checks to make sure perspective tenant/buyers are capable of securing financing within the option period. The deal being this company would take a down payment from capable tenants and would finance a rent to own deal with them. I would receive a check to cover my mortgage, and when the option to purchase is used, I would sell to the company who would turn around and sell it at a slightly higher cost to the tenant buyer. Seems like a win situation all around.
It didn't take too long before the owner/manager of this company became very lax and lazy within the dealings of being a property manager and etc. I have the contact information and have been in touch with the tenants, and neither of us are happy with the company to say the least. Some months he (the manager) will forget to send my check out and it will be doubled the following month. It is now nearing the end of the 2 year option period, and I have not received a check in over 2 months. About a year ago, I agreed to pay for a repair and had the manager withhold a months rent to fix it and then send me the remainder. The repair was minimal in cost, but I have yet to see any amount from that remainder. So this company currently owes me a couple thousand between rent and the repair remainder.
The only clause I can see referencing this scenario is this: "Default. In the event Buyer fails to fulfill any of Buyer's obligations hereunder, this agreement shall, at the option of Seller, be terminated, and Buyer's said option consideration/deposit shall be retained by Seller as Seller's sole remedy."
The tenants still want to purchase the house at the end of the period, so I have a couple of questions on how to proceed:
How do I end the agreement with this company since they have not paid? Is it the same process as evicting a tenant from a normal rental lease? Can this company be sued in small claims for the months of rent I did not receive (the tenants paid the company but the company didn't pay me)?
Also, from the tenants standpoint, since the company defaulted can they get their down payment back to purchase the house from me directly?
Any help or advice is appreciated.
I have rent to own agreement (purchase option) on a property that I own. I went the route of having a rent to own company act as the middle man because it seemed safer for myself with this company acting both as a property manager and one who performed background checks to make sure perspective tenant/buyers are capable of securing financing within the option period. The deal being this company would take a down payment from capable tenants and would finance a rent to own deal with them. I would receive a check to cover my mortgage, and when the option to purchase is used, I would sell to the company who would turn around and sell it at a slightly higher cost to the tenant buyer. Seems like a win situation all around.
It didn't take too long before the owner/manager of this company became very lax and lazy within the dealings of being a property manager and etc. I have the contact information and have been in touch with the tenants, and neither of us are happy with the company to say the least. Some months he (the manager) will forget to send my check out and it will be doubled the following month. It is now nearing the end of the 2 year option period, and I have not received a check in over 2 months. About a year ago, I agreed to pay for a repair and had the manager withhold a months rent to fix it and then send me the remainder. The repair was minimal in cost, but I have yet to see any amount from that remainder. So this company currently owes me a couple thousand between rent and the repair remainder.
The only clause I can see referencing this scenario is this: "Default. In the event Buyer fails to fulfill any of Buyer's obligations hereunder, this agreement shall, at the option of Seller, be terminated, and Buyer's said option consideration/deposit shall be retained by Seller as Seller's sole remedy."
The tenants still want to purchase the house at the end of the period, so I have a couple of questions on how to proceed:
How do I end the agreement with this company since they have not paid? Is it the same process as evicting a tenant from a normal rental lease? Can this company be sued in small claims for the months of rent I did not receive (the tenants paid the company but the company didn't pay me)?
Also, from the tenants standpoint, since the company defaulted can they get their down payment back to purchase the house from me directly?
Any help or advice is appreciated.
Business Disputes: Terminating a Contract With a Rent-to-Own Management Company
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