Fully Executed Lease Contract Cancelled - What are my options??

[Kathleen McCabe]

Hello,

I am a new agent (we are talking less than a month in). I have rental clients that secured a lease - it was signed by both parties and security deposit was paid. Today, the listing agents calls me and says they have to cancel the contract because the client is getting a divorce and changed her mind.

I wrote her back saying that they have a legal obligation to proceed .... contract will be breached if they do not move forward. My clients really love this place and want to move. I also added that if she absolutely cannot proceed & to avoid legal action, my clients expect three months rent and their deposit back.

She just wrote me back saying the lease was not completed because the LL's husband never signed. I had no idea she had a husband, and I do not think they were intending on bringing him into this.

What are my options and do both owners have to sign a lease agreement? his name was never even entered into the original contract and there was no place for him to sign.

This is my first transaction... beginner's luck! go figure. lol

Thanks,

Katie

[Jeff Fountain]

A for effort, B for judgment. I am with Jim. You are probably legally correct, but I am far from a lawyer, just someone with an opinion. Can you imagine the stress that you and everyone else is about to go through? Ask yourself is it worth it. Let's say you do fight it and the one that backed out ended up becoming the landlord, can you imagine what your clients would possibly endure getting anything repaired? Life happens, move on. I have several rental properties with all my tenants who are professional folks. When one wants out early for a valid reason. I allow it and move on. We don't want the turnover but is $1K or whatever the dollar amount is for the turnover really worth the stress of it all. I do applaud you for reaching out and seeking opinions/advice. Don't get me wrong, I am the first one to want to take someone to task and hold them accountable. This particular situation just isn't worth it. Keep up the great work of trying to protect your clients. Now it's time for your persuasive skills to kick in and convince your clients to move forward. And one final note. Look at it as a great lesson. Another first-time real estate agent may have to wait to learn a valuable lesson. Wisdom is where it's at. Money will follow.