[TD11021965]

Hi

I have a house in LA, owned by my parents. My sister lived in the property, but without a lease. She in her wisdom decided to sublet the house via an agency and live elsewhere on the rent proceeds. To make the house more attractive she offered it for rent with the services of a gardener and weekly maid.

My parents cottoned on to what was happening and ordered her to stop. The maid and the gardener were cancelled, and the sublet tenant asked to leave. As a result of all this the letting agency are now suing my parents for $20K.

This seems massively unfair to me.

Any help or advise appreciated.

Thanks

[ScottGem]

What is the basis of the suit? But, as owners of the property, they are responsible. They can, of course, turn around and sue their daughter for whatever the court awards the leasing company.

However, there is a good chance they can win. I would take the position that, since the daughter did not own the property, or have a valid lease, they should not have entered into contract with her in the first place. So this was their problem for not doing due diligence and making sure the daughter had to the right to enter into the contract with them.

[TD11021965]

The lawsuit is for breaking the lease - but as you say, they never entered into the lease.

[smoothy]

I am with Scott on this... the daughter lacked any lease that gave her the authority to sublet or enter into any contract regarding the property with a leasing company.

If I was your parents I'd hire a lawyer (covering their own butt is paramont even if it means throwing the daughter under the bus), have them specifically respond to the leasing company that the daughter had no legal authority to act on behalf of that property, which THEY, not her owned. And while I am not sure on this part... lacking a written lease that allows subletting, doesn't automatically mean she could do anything she wants, including that.

I'd have the daughter served with a notice of eviction as well... just to cover all the legal bases.

[AK lawyer]

... If I was your parents I'd hire a lawyer ...

Clearly.

An attorney should be able to make short work of this, and take the letting agency to the cleaners, assuming there is nothing else important that you have not mentioned, or not been told.

They should not, and need not, try to do this on their own.

[smoothy]

He's something I just thought of, while working on something else.

#1. Your parents daughter... had no written lease. That means she was on a month to month lease. Anyone on a month to month might be given a 30 notice to vacate and they have to.

#2. Lacking a long term written lease... even where subletting is permitted, you can't have a lease longer than the master lease, besides the sublease is ALWAYS subject to the master lease terms.

I think this leasing agency are scam artists, because any sublease could not legally be binding for longer than the term of the master lease which is 30 days as its month to month. She had no written lease so legally it defaults to month to month. If anyone should know this... they should.

Any fraud or misrepresentation should be the responsibility and fault of the daughter who made them, not the property owners.

Any competent lawyer your parents get would explain that to them... and they should get one now if they haven't yet. Let the lawyers deal with this... then they can deal with the daughter however they want after she's been evicted. Before she can do more damge.
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This is only an example of what I was saying...

I.E. you can't lease a place for a year, then sublet it on a 30 year lease. The property owner would NOT have to honor that because the person who made that wasn't in the position to do such a thing. Particularly past the initial year if they decided NOT to renew the master lease for any reason.

[ScottGem]

You've been given some very good points. I'm not sure if the leasing company is scamming, but they clearly did no exercise due diligence in insuring that your daughter had the right to enter into a contract with them. Even if the daughter lied about her ability to enter into a lease, they should have verified ownership and when they found out she wasn't the owner, they should have verified her right to enter into a leasing arrangement.

I would start by sending them a letter stating that the daughter had no right to enter into a lease and they should have verified that before entering into a contract with them. Therefore they have no grounds for their suit. If they decide to pursue this action your parents will counter sue. At that point consult an attorney.