We signed a lease-option purchase contract for our home in Aptos, Ca. for $995,000 with Lessee/buyer in September of 2015, ending 2/28/17. We extended the contract one month to 3/18/17. The Lessee/buyer was unable to perform, however his parents want to buy the house. The Lessee has paid us $86,000 toward the purchase. ($84,000 in 2016, $4,000 in 2017) The Lessee/buyer's parents want the purchase contract price to be $909,000 ($995,000 less $86,000). We agree but do not know how to write up the purchase contract. (Lessee/buyer will not be on the contract even though he was the one who paid the $86,000).
For a property this valuable, you would be well served to spend a few dollars with a real estate attorney to draft a contract fitting your specific situation. I would not recommend letting a real estate agent write the contract in this case.
You should use Find a Lawyer at the top of the page to locate an experienced real estate lawyer in your area.
This information does not constitute legal advice and does not establish an attorney-client relationship.
When subject matter of this value is involved, it really makes sense to spend a few dollars to make sure all the required i's are dotted and the t's are crossed.
Obviously I don't know all the facts, but it sounds like a relatively straight forward situation. From a pure contract standpoint, you are simply agreeing to lower the purchase price and don't need a reason. This will be a benefit to the buyer not only because of the price reduction but also because of the lower RE tax reassessment. You could reference the past payment of rent by a third party as the reason for the price reduction - but that could create risk and even (believe it or not) some argument by the Lessee of entitlement to ownership - far fetched and not necessarily your problem (at least not directly), but a risk of complication at a minimum. My overriding comment is, however, consistent with the other counsel who have chimed in that you should most definitely consult an experienced RE attorney if you are going to make any reference or accommodation to the prior lease payments in the purchase contract with the parents.
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