Hi all;
Does anyone have a suitable clause to use that enables me to cancel an option to purchase if the tenant breaks the conditions of the lease, eg, does a runner or trashes the place.
thanks in advance
What about something like this:
“in the event that the lease agreement has been terminated prior to the exercise of the option, then the option is deemed to have lapsed and the option fee foreited.”
Then cover in the lease agreement things that can cause the lease to terminate.
Terryw
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This should be handled by a solicitor, even though it may appear simple and straightforward.
The Residential Tenancies Act provides laws relating to leases, but may not cover options to buy, and you need to be sure that the act of terminating a lease, whether done by mutual consent of the parties or by a Tribunal, actually extinguishes the option to buy as well. A breach of a lease does not in itself terminate a lease, and one party to a lease cannot terminate a lease. That can only be done by mutual consent, a Tribunal or by a time clause in the lease such as a fixed lease period. But, in the case of a terminated lease, you really need to be sure the right to buy option is extinguished before moving forward.
cheers
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