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.
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