Question
Rachel is considering selling one of her rental properties to her long-time friend Tina. Tina has enough in savings to make a small down payment
Rachel is considering selling one of her rental properties to her long-time friend Tina. Tina has enough in savings to make a small down payment and is in a position to make monthly mortgage payments, but Tina has a poor credit history, so she's probably not going to qualify for a loan. Rachel feels that her friend Tina is super trustworthy, so she proposes using a land contract for the transaction. Tina agrees.
- What are the benefits of using a land contract for each party?
- What steps should be taken to protect each party's interests?
Part 2: Sydney has a two-year lease on a house, with 16 months remaining in the term. She's a month behind on her rent which seems to happen often. She emails her landlord, Fran, complaining that: 1) two handles have fallen off the kitchen cabinets; and 2) because of a rotten gutter, water is leaking into an exterior wall of the house, causing thick black mold to appear on the inside of the wall by his bed. Since Sydney is notoriously late paying rent, Fran decides she'll take her time in responding to Sydney about the repairs.
- Does failure to repair either of these problems amount to constructive eviction?
- What are Sydney's rights under the circumstances?
- Was there a better way for Fran to get rid of her problem tenant?
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