Add the fact that the Property Code declares open season on the investor/seller whenever a tenant/buyer becomes disgruntled with an executory contract, and there are more reasons to avoid lease-purchases than there are to do them—especially since loss of an executory contract lawsuit could present an extinction event for a small investor.

You could probably find some free legal counseling maybe to send a letter threatening a lawsuit if they don't at the very lease give you your deposit back.  

@Jeevs Pothen,Here's what you need to remember about protection from liability / lawsuits: "Control everything, own nothing" - not even the LLC(s).David J Dachtera"Success is not a destination.

The biggie in CA is the possibility of a creditor claim by Medi-Cal (DHCS) that could easily exceed the total amount of equity in the estate's primary asset, the property that you are trying to buy.As if that black box isn't enough, you need to be aware of the lawsuits between heirs.

I always thought that my COC of 7 or 8% wasn't much of anything considering you can make this in the stock market without hassles of tenants or law suits.

Plus there would be the added Cash flow of the 300 SF mother in law suite that is currently rented at $1,200 per month.

You couldn't kick out the widow just because he died unless she failed to pay the rent.If you try and void the lease, Im pretty sure you would be liable to a lawsuit, which I doubt you would win.

You can file a personal lawsuit but then you're squeezing blood from a rock, you might get a settlement but if they don't pay on it, you're stuck.

These lawsuits can be very successful.

Unless you have been served some sort of lawsuit, there is nothing you need to do.