Q: With “Rent to own” financing where breach occurred, is Confessed Judgment in lieu of Sm Claims complaint ok?
A: Until the tenant exercises the option to buy, and converts the lease into a sales contract, the tenant remains a tenant and the owner remains a landlord, and the remedies for breach are governed by the landlord tenant laws. There may even be a gray area between exercise of the option and actually taking steps to convert the lease into a sales contract sufficient to convert the status of the tenant into a buyer. Landlord-tenant laws and remedies are generally exclusive, and do not allow for confessed judgments. The exact language and factual circumstances need to be better articulated than in your question, and the provision itself within the larger agreement needs to be reviewed before a proper answer is possible. You also do not describe the nature of the breach or which party breached. Rather than asking question after question piecemeal, without proper context, consult a lawyer in private on this topic so the complete situation can be understood. It’s like you’re asking to know what the finished puzzle will look like based on showing just one or two of the puzzle pieces.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.