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As an ignorant landlord, can I get out of a lease option I was tricked into signing by a savvy realtor/leasee?

I want to sell my property, so at the signing of the lease, my new tenant suggested I add the following statement to a standard lease to make it a "lease option": "Lease with option to buy at current market price of $550,000 less rent collected at termination of lease." He said this was the usual way such things are done and it had to be done that moment as part of the lease. I have since done my homework and found out different. How do I get out of this agreement?

Public Comments

1. Sorry to hear that you have been tricked into signing this lease option. I'm in the U.K. and would suggest that you get legal advice quickly. It would seem that if you signed to agree with the statement it will be difficult for you to retract that. I wish that I could be more sure. Never let a tennant add things to the agreement, it's bound to be in his favour after all it is your house not theirs.
2. I'd be curious as to how it is usually done. However, if he represented that " this was the usual way such things are done and it had to be done that moment " he may of commited fraud. I am not a lawyer, but I believe one can't fib to induce someone to make a contract.
3. This is NOT unusual! It is called "rent (lease) with option to buy". I've used this in the past because it was the only way in a soft market (like today's) I could sell a home I owned. It worked great for both me (seller) and him (buyer). He got to try out the home to see if he really wanted it and I got the place sold. What, EXACTLY, do you not like about the deal?
4. I have never heard of 100% of the rent going toward the purchase price in any lease option. If this is a 1 year lease then I expect that you could "choose to not renew" at the end of the year. Simply adding that one statement to the end of a typical one year rental lease would not in my opinion make the lease anything more than a 1 year lease and if he does manage to come up with financing by the end of the year he will still be paying very close to the asking price of $550,000. Legal advice may be necessary.
5. Unfortunately, ignorance doesn't count in contract law. Provided this person can get financing before the end of the lease period, you have to sell the house for $550,000 minus the accumulated rent payments. As a reality check ... what did you pay for the house? As long as you are not losing money, consider it a lesson in life. However, you can insist on the closing being the day the lease expires, which puts the pressure on the tenant to qualify for the loan. If they aren't READY to buy on the last day of the lease, that contract is over.
6. OMG, that is awful!!! Find an excuse to evict him! He is stealing your house! The lease option is not unusual, but the "less rent collected at termination of lease." is TOTALLY out of line. A small portion of rent is applied to the sales if it completes. It is NOT refunded, and this contract has you giving back all of his rent if he does not buy! You need to talk to a real estate attorney and try to nullify this contract. It is binding, but hopefully you can find a loophole. The fact that this creep is a realtor will help you (didn't you think it odd that a real estate agent would want to rent?) in that he is expected to follow real estate laws to the fullest, and could actually get in trouble for trying to full you. This is pretty seriously bad and you really need legal help from an attorney within your county.