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Anchalee · Apr 26, 2013, 07:14 AM

I have thought of that. I'm just worried that they could put a lien on the property. That is the only thing holding us back.

I am however curious about what user ebaines said about this being a business contract. Is it really a business contract or a contract with an individual. My father. They have no "business" they could come after. The only personal information they have is my dads. They don't even know my mom exists. Since I handle everything. And they have none of my personal info. Let them come after my dad. It doesn't matter now that he has passed. Unless they can come after the apartment.

ScottGem · Apr 26, 2013, 08:36 AM

Unless your father and mother lived on the property at the time the contract was entered into, I think they can successfully argue that they contracted with a person running an apartment rental business.

Lets look at what would happen if they sued. They would, In my opinion, win that you are bound by the contract. In which case, you owe them for the months that you did not pay and for the balance of the contract, plus legal fees.

Anchalee · Apr 26, 2013, 12:31 PM

Yes. Ultimately in the long term I think it may be best to pay to get out of the contract and just pay the termination fee. I'd hate to take a gamble and end up paying more in the long run. It really is just tying up loose ends after a loved one dies. And it should be tax deductible. So that's a plus. Thank you for your advice

ScottGem · Apr 26, 2013, 01:00 PM

Good luck

joypulv · Apr 26, 2013, 01:07 PM

I'm still inclined to think you can put the burden on them. I'm just not seeing a clear case.

Anchalee · Apr 26, 2013, 02:04 PM

We are ultimately going to ask the lawyer that is helping us tie up all the loose ends after my fathers death. I'll let you know what happens. If you are curious? Maybe this will help someone else in a similar predicament.

ScottGem · Apr 26, 2013, 03:08 PM

Yes please do.

cdad · Apr 26, 2013, 03:51 PM

Originally Posted by Anchalee

"Rental properties is not a rental business unless it is held seperate." What does this mean. " held separate"
The rental property is a 2 unit apartment with 1 tenant each. The city calls it a residence but the waste management says we are a business. I realize that my mother renting out an apartment does not make her a business. But what about legaly?

The held separate would be if your dad was incorperated or a LLC (Limited Liability Company). The funds for the business are usually held separate from the funds the household runs on. He may take a draw from the earnings as his pay. That would have been separate from his personal holdings.

Also when you do get back with us please let us know the area you live in or the area the property is involved in. Local laws make the difference for many answers.

AK lawyer · Apr 26, 2013, 04:59 PM

Originally Posted by Anchalee

I have thought of that. I'm just worried that they could put a lien on the property. That is the only thing holding us back.

I am however curious about what user ebaines said about this being a business contract. Is it really a business contract or a contract with an individual. My father. They have no "business" they could come after. The only personal information they have is my dads. They don't even know my mom exists. Since I handle everything. And they have none of my personal info. Let them come after my dad. It doesn't matter now that he has passed. Unless they can come after the apartment.

They cannot "put a lien on the property" unless they first successfully sue you. I don't think they can successfully sue.

I disagree with a distinction that Ebaines and ScottGem are trying to make concerning whether it was "a business" or not. In my humble opinion, that makes no difference.

Originally Posted by ebaines

Careful - it is perfectly legal for a business to have a contract that carries over when the business is sold or transferred. The language cited by the OP says precisely that ("successors and assigns"), so if the mother has taken over the business she has also taken over the business's existing contracts

.

What you may be thinking of, Ebaines, is a corporation or other business form which has perpetual ownership and which the mother would now own. Sure, the entity would still be bound by the contract, but not sucessors. But as I understand it, this is not the case. The property was passed from the deceased father to the trust. The only way the contract could survive is if had been recorded, or the trust was otherwise put on notice. The ("successors and assigns" to which you refer only holds up that way.

What does matter is whether OP was put on notice of the contract when OP obained ownership. As I understand it, OP obtained title through some sort of a testamentary trust. So, when the property was conveyed to the trust, assuming the contract had not at that time been recorded, or the trustee was aware of the contract, the owner of the contract can no longer enforce it.