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lease-option question, leaks, mold, repairs
We looked at a property today that the owner has offered to look into a lease-option with us (she is an acquaintance of mine) and has been carrying two mortgages for a year now. We loved the property. Minus one problem. One BIG problem.
We went to look at the property today and loved it. Then it started raining, so we had the idea to go back and look again. Keep in mind this place has been sitting empty for a year, with the owner living several hours away now. When we went back, I had thought of several more things to look for (such as ceiling stains, dips in the floor, etc). I noticed horrible, very evident mold on the ceiling of one of the bedrooms. And then a terribly large puddle of water (which had not been there on our previous walk-through just a couple hours prior) in the next room. We went upstairs and looked, and everything seemed in order. We went outside and looked.... The roof over the upstairs stops right where the moldy section of ceiling and leak would be downstairs. The gutters are backed up terribly, and it looks like water has been pouring off the second story roof to where the problem on the first story is. Anyway, I'm sure the problem is much worse than it looks. If there is mold on the ceiling inside, I'd bet the roof needs to be repaired/replaced and probably a lot of the interior wall in that area, maybe even some of the floor if it has been leaking long enough to cause that much damage.
Are we wrong to think this will be this big of a problem?
Should we pursue this lease-option if the seller will make the repairs prior to us moving in? We can give her until December if needed.
Would it be wise to agree to make the repairs ourselves and deduct it from the agreed upon purchase price or in place of the rent until it equals out or we exercise our purchase option? With, of course, a clause stating that any and all costs are to reimbursed should the seller terminate the contract or back out for any reason.
We should get an inspection beforehand, just as we would if actually purchasing the property right now, right?
Here is a general contract I found that I *think* outlines everything I want included or has wiggle room to specify and taylor it to our needs. What do you think? http://www.getrenttoown.com/rent-to-own-resources/sample-lease-option-purchase-contract
TIA! And if this house doesn't work for us, we're not going to be devastated. We'll just keep looking. But we really love this house and the future potential it has.
Re: lease-option question, leaks, mold, repairs
Unfortunately, neglect and problems is what happens when no one is living in a house for a long period of time. Before making a purchase decision, I would have a home inspection done. A home inspector should be able to give you the full low down on what is wrong and what could potentially be wrong for areas that he/she can't see.
After that, any work that is a deal breaker for me, I would insist the current owner pay for and fix before I signed any lease for purchase contract. Primarily because I am just untrusting. It's one thing to have it written in a contract that the seller will reimburse you for the repairs done if the purchase does not go through...and QUITE another to successfully enforce that clause if things go awry.