My company signed a three-year lease/option contract for a building that was owned by a widowed women. But before we could initiate the option to buy she died one year later. Her only daughter later on inherited all her assets and told us we must signed and negotiate a new contract. Do we have to negotiate a new contract or do she have to honor the contract that we had singed with her mother before she died?
5 thoughts on “Signed a lease option contract but the owner died. Will I need to negotiate a new contract with new owner?”
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She’s wrong, the contract does not expire just because one of the signatories does. As long as you are not otherwise in default under the agreement, it is still a valid contract.
Sounds like the value of the property has increased and she doesn’t want you to exercise the purchase option. Just don’t give her any reason to claim default.
As the drop-dead date draws nearer, evaluate your options as far as pulling the trigger. If she wants the property back, get all your rental payments back (at least).
No the estate is bound to the contract, So the daughter can be forced to honor the orgninal lease and terms.
If she does not want to, you can sue for speicific performance to force her to honor the terms.
If it’s worth it, I would get a lawyer on this right away (a good one). Do it right now.
Definately don’t sign a new one until you get a quick read on this. You might be well within your rights, maybe not.
The estate must honor the contract, therefore the new "owner" must honor the contract that her mother entered into with you.
It is not yout fault her mother expired – at least I hope not, and therefore you are simply a person who is holding a valid contract that lasts three years.
In other words she "FOS" ans "SOL" (that’s not the legal term I’m sure).
This is why real-estate attorneys exist. Unless this entire arrangement is worth NOTHING to you either way, then fer chrissakes call an attorney and make an appointment instead of asking random strangers on yahoo answers.