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alu1971 · Apr 11, 2011, 10:08 PM

We are currently in contract to sell our home. The closing date was tentatively scheduled for April 22nd. We were anxious that something would happen to delay the closing, so we waited until the first week of April to start looking for a place to rent. Everything appeared to be in good shape, so we signed a lease for an apartment in a private home on the April 7th. We paid pro-rated rent from 4/20 to 5/1, a one month's security deposit, and a one month's broker fee. (What a difference a few days make!) Over the weekend, we were notified that the buyers of our home are having last-minute difficulties with the bank that they are expecting to get their mortgage from. Then, this morning, I got a call from the bank that my husband's paycheck bounced. He got into an argument with the client and was let go. I am a student, so there is no way that we can afford to hang on to the house and pay rent on the apt. I spoke to the realtor, but was told that the LL would not return any of the money we have paid and would likely try to get more rent out of us. There is no termination clause in the lease. As it is, we are trying to sell our home because we can't afford it anymore and even if we do sell, we will be left with nothing, so I don't think the LL will have much to gain from suing us but I was hoping someone might have some advice. Since my husband's check bounced, the deposit checks that we gave are going to bounce as well, but he brought home a new check today. I am planning to cash it so that I can make some amends to the LL (I'll give them all of it if necessary, but I'm hoping I won't have to). FYI: it's a nice place in a pretty popular neighborhood in NYC, so it's likely that they'd find someone soon. Just wondering if I can get out of the lease and what others would do. Thanks in advance.

joypulv · Apr 12, 2011, 03:13 AM

At the moment I can't get to the state statutes (or much of anything online) but if I remember correctly, you must pay for the apartment as long as it remains unrented.
Is there a down payment from your house buyers that you will be able to keep, or are they still in a stage where they can back out?

ScottGem · Apr 12, 2011, 03:31 AM

Originally Posted by Clyeds

397 U. S. 254 (1970),

Excuse me but what has this to do with the OP's question? Why did you post this at all?

ScottGem · Apr 12, 2011, 03:35 AM

Without a termination clause in the lease, you are responsible for the lease until the landlord finds a new tenant. The LL cannot however, keep your deposit except as compensation for unpaid rent. If you never occupied the premises, then there is no question of the deposit being used for damages.

In addition, you will probably find that your contract with the buyer's is contingent on them obtaining financing. So if they don't you may have to return any deposits they paid.

Fr_Chuck · Apr 12, 2011, 03:54 AM

You are just in a very bad situation.

You will not get out of the lease, and will have to pay all penalties and rent till they find a new renter. Next as noted, depending on the contract, any money paid down on the home will be repaid ( should be held by real estate broker) if there was term that they had to get loan.

And Husband choice to get into argument with someone at work, was a poor choice at this time.

alu1971 · Apr 12, 2011, 11:17 PM

Hello everyone,
Thank you for your advice. The buyer's contract was indeed contingent on their getting a mortgage but someone up there must love us because they called again today and let us know that they worked it out with the bank.

Fr_Chuck, I told my husband the same thing, but the client kept stalling on paying him.

Thanks again guys!

ScottGem · Apr 13, 2011, 03:06 AM

Good luck and keep us posted.