Can someone assign a lease option to someone else if they haven’t performed the initial contact and hasn’t paid their option fee?

Get Legal Help Today

secured lock Secured with SHA-256 Encryption

Can someone assign a lease option to someone else if they haven’t performed the initial contact and hasn’t paid their option fee?

I know under contract law consideration has to be paid for a contract to be legal. What if a party uses your option money to pay that consideration at a future date? How do they have a right to assign the option if their option fee hasn’t been paid yet?

Asked on March 10, 2018 under Real Estate Law, Ohio

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, they can assign their right to the option to another so long as they are not in breach of their obligations under the contract at the time they do so (and also so long as the contract/lease does not have some clause or provision barring or limiting assignment). If they were in breach, since breaching a contract in a material way allows the other party to treat the contract as terminated, the other side could refuse to allow the assignment. The assignee will then have to pay whatever fees, whenever due, as are necessary to exercise the option, if they choose to do so.


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