If a homeowner lists their property as “lease to own”, are they considered a “seller” and required to disclose property information to the future buyer?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If a homeowner lists their property as “lease to own”, are they considered a “seller” and required to disclose property information to the future buyer?

When is the homeowner required to disclose legal information (seller property disclosure statement) to the future buyer: at the time of the lease-to-own contract or; when the contract expires and, before the prospective buyer secures a home loan. If the seller doesn’t disclose information, that would help the prospective buyer in deciding whether, or on what terms to purchase the property and the prospective buyer enters into a contract and determines information was not disclosed, which would have effected their decision to enter into the lease-to-own contract, can the prospective buyer sue?

Asked on November 8, 2011 under Real Estate Law, Kansas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Good question. In a lease to own situation, the landlord of a piece of real property does not have to submit the transfer disclosure statement or any other required documentation until the tenant exercises the option to purchase the parcel.

Many times the tenant in a lease to own situation actually lives in the rental and has the opportunity to make his or her own inspections on their own at their leisure or retain a third party expert on many occasions to look at the struture as to its integrity.

If the seller does not submit the required transfer disclosure statement and any supplement after the option to purchase is exercised by the tenant, the tenant has the option of cancelling the purchase without any recourse. Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption