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Lease with Purchase Option?
I am in a lease with option to purchase. The house had oil heat (which had a very slow leak), and when it came time for the AC to be used, the chiller had so many leaks it needed to be replaced. I have written the landlord and have confronted him about it. The local HVAC repair suggested a new system since the currnet system is so old (I think 30 years old). When the landlord go the recommendation, he went out and bought a new heat pump system, but he asked me if I was willing to pay for the installation. I told him no because the option to purchase was still a year off and it was his responsibility. So he said he was only going to have the AC section installed and not the total system. After arguing for 20 minutes, he asked what about if at the time of closing that I pay for the installation. He wrote out an addendum to the purchase stating that I would pay for the installation at the closing of the property and we both signed it and he made a copy for my records. My question is "Is this legal"? And is this a binding addendum?
Public Comments
- I'm not a lawyer, so this isn't legal advice. However, I am very familiar with lease-options. So... If the document was properly drafted, yes, it was legal. It is binding. The big word, of course, is "if" it was properly drafted. But it'd be perfectly legal, and in fact it's a good solution, to provide that you pay for the installation at closing. That way, if you buy, the owner gets compensated for the installation. And if you choose not to buy, then you don't owe him for the installation. It effectively raised the price of the property by the amount of the installation, but it's still your option as to whether you want to buy. Hope that helps.
- It's probably valid as it appears that both parties are receiving something of value in return for something of value from the other party. However you should have it reviewed by a local attorney to be sure.
- I am not a lawyer but I have engaged in signing contracts. The basis of a contract is a meeting of the minds. It would appear from your statements that there was a meeting of the minds. The same would hold true for the addendum.
