Rental Agreement After a Short Sale
My question involves landlord-tenant law in the State of: Florida
I have been helping my friend out the short sale of her home for a year now. It was a very complex deal because both she and her exhusband were on the title, and the latter of the parties had $100K of liens on the property and wanted an additional $25K from the sale of the home.
I began renting the home from her almost three years ago as it was helping us both out due to the proximity to my job.
She had a party last year who wished to buy the property but then backed out because they couldn't meet her exhusband's terms. We signed a contract with a real estate agent who wasn't completely reliable but we kept him on due to our history of being friends with him.
April 2018 rolled around and I found myself drafting the necessary bankruptcy paperwork to save the home from a sale on the court house steps. Our real estate agent then advised us that he had a party that was willing to buy the home and meet both our terms as well as those of my friends exhusband. The potential buyer was really overzealous and determined to buy the property.
The deal was that he would take care of the sale of the property with our real estate agent, the exhusband's liens, pay relocation fees to both my friend and her ex and even pay me under a Cash For Keys type of deal upon vacating the premises.
During this process, the real estate agent at the time sent me a packet from the home lender for me to fill out as the tenant so that I would be made a party to the sale and subsequently be compensated for having to move during the middle of my lease.
Unfortunately we discovered that our real estate agent's license had lapsed and he was operating without. We had no choice but to let him go due to the nature of the deal as we were sure the lender would not want to work with an unlicensed agent.
So, the Buyer advised us that his mother-in-law would be taking over the reigns as the new agent for both the buyer and the seller. I was also advised that I should in no way disclose to the lender that I was tenant and that "he would take care of me" as the process would take much longer otherwise. The new agent was quite aware of the monetary arrangement but refused to discuss it with us.
The Buyer also drafted up agreements for both myself and Seller from his attorney which stated we would be compensated for two different amounts. Agreements which he subsequently backed out of stating that his attorney wanted no part of it because the deal was very complicated and "might go south".
Fast forward several months and after much work from all parties involved, the deal was struck. The house was Sold under the parameters that Seller received half of her payment from the Buyer up front and would receive the other half after moving out. I was only to receive my payment from the Buyer after I moved out.
The terms of the rental agreement after the sale of he home had been extremely modified from the original terms but the Buyer reassured us that he would once again 'Take care of us". The original rental agreement stated that we would have 60 days after the sale of property and that the money would be relinquished to us at that time. The Buyer came back with a 29 day rental agreement that he said was capable of extension if we needed more time which we currently do. He also stated that he could not list the Seller of the home on the rental agreement because it was illegal to rent a property back to the Seller after a Short Sale. I was to be the only party on the lease and she could live here as long as 'No one knows about it."
So upon the 29th day of the rental agreement the Buyer of the home asked why we were not moving even though he was aware of that I spoke to him at length 5 days prior that we may need a couple more days in the home due to medical issues. He then went on a tirade about he was losing money every day that we stay in the home and that he had scheduled a demo crew to come in to the home the after we moved and that would now have to pay the fees for their workday.
Mind you that this guy was supposed to walkthrough upon signing the rental agreement, which he turned into a pony show by bringing in his friends in to measure the space rather than take inventory, the A/C unit froze up a week after he closed on the home and we had to pay out of pocket for it, had both a contractor and inspector come over for total of six hours inconveniencing us with our pets. This is not to mention the constant texts and calls to me asking when I am moving out (at least 3-5 per week for the past month). It got to the point where I stopped answering his calls and have been addressing him only in email due to his "doublespeak". I do not trust him at all.
Now, it appears that the compensation that he promised was all lies. I am pretty sure it is going to come down to the eviction process this week.
So my questions are pretty simple. 1. Shouldn't my tenancy have been disclosed to the lender despite his promises? Is that illegal? 2. What is my recourse here? I have plenty of documentation and witnesses to his actions and promises.
Re: Rental Agreement After Short Sale
Quote:
Quoting
citylimits
So my questions are pretty simple. 1. Shouldn't my tenancy have been disclosed to the lender despite his promises? Is that illegal? 2. What is my recourse here? I have plenty of documentation and witnesses to his actions and promises.
Shoulda, woulda, coulda.
So much shadiness in this deal that you could dome a ballpark.
Your recourse is to take a barrelful of money and give it to a lawyer on the remote chance that a lawsuit will get you your money.
Unless you are talking about a couple of thousand that's within the small claims limit. If that's the case, go ahead and sue the guy. Make sure all of your witnesses are willing to go to court and testify.
Re: Rental Agreement After Short Sale
First off, you should have never been putting yourself in the position of playing lawyer. You were obviously not suited for it in addition to breaking the law.
Absent an arms length lease executed by the seller, you're a month to month tenant and despite all the "details" you enumerate, the new owner is free to give you fifteen days notice before the end of the subsequent monthly term to have you out (with no cash for keys).
Whether the fact the property rental should have been disclosed to the lender is entirely between the bank and the borrower. You have no bone in that discussion. Consent to lease is routinely given and frankly, if the intent was to terminate the lease and occupy the property, there's no real issue with the bank here. Short term rental after closing whether by a tenant or the former owner (it happens at times when the owner's new property isn't ready, I've done it a couple of times in the past), is not an issue as long as the intent is to owner occupy.
I'm not seeing how you have any recourse here. You can talk about all this intent to elevate your status but it's all talk. There's not anything even resembling a contract here. You are solely a monthly tenant and Florida only requires 15 days notice for termination.
Re: Rental Agreement After a Short Sale
Quote:
Quoting
citylimits
The terms of the rental agreement after the sale of he home had been extremely modified from the original terms but the Buyer reassured us that he would once again 'Take care of us".
Was that the exact and only language used?
Quote:
Quoting citylimits
The original rental agreement stated that we would have 60 days after the sale of property and that the money would be relinquished to us at that time. The Buyer came back with a 29 day rental agreement that he said was capable of extension if we needed more time which we currently do.
If you did not enter the "original" agreement, and you do not want to enter into the new agreement, then you will continue to negotiate the terms of your rental.
Quote:
Quoting citylimits
So upon the 29th day of the rental agreement....
This would be a new agreement that you signed, to stay for only 29 days with the possibility of extension, and for which you did not complete negotiations for an extension?
Quote:
Quoting citylimits
the Buyer of the home asked why we were not moving even though he was aware of that I spoke to him at length 5 days prior that we may need a couple more days in the home due to medical issues.
Stating that you "may need a couple more days" is not actually a request for an extension -- it is instead notice to the landlord that you may be requesting an extension. But assuming that the landlord was receptive to your need, and agreed that your move-out could be delayed for a couple of days based upon medical need, what did the landlord say when you reminded him of the discussion and asked if you could be out on day 31 or 32?
Quote:
Quoting citylimits
This is not to mention the constant texts and calls to me asking when I am moving out (at least 3-5 per week for the past month).
The easy way to stop those inquiries is to give a firm move-out date.
Quote:
Quoting citylimits
Now, it appears that the compensation that he promised was all lies. I am pretty sure it is going to come down to the eviction process this week.
If there was some sort of oral "cash for keys" agreement that was never made part of a written contract, you have a problem. But that aside, if you failed to move out at the end of your contractual lease term and continue to refuse to give a move-out date, even in a "cash for keys" scenario you would have trouble convincing the landlord that you were entitled to anything. "Cash for keys" agreements involve the occupant's moving out on the agreed date and leaving the premises in an agreed condition (e.g., "broom clean").
Quote:
Quoting citylimits
Shouldn't my tenancy have been disclosed to the lender despite his promises? Is that illegal? 2.
The buyer should have informed his lender that the initial occupation would be by you, as a tenant, pending an agreed move-out date; but that doesn't affect your rights. That's between the buyer and the lender.
Quote:
Quoting citylimits
What is my recourse here? I have plenty of documentation and witnesses to his actions and promises.
He apparently promised to "take care of you" if you moved out by an agreed date? But you haven't moved. So what promise is he actually breaking?