Termination of Lease Prior to Occupancy

[Songbird1984]

What is the name of your state (only U.S. law)? Montana

We help an older gentleman manage a residential rental property in Montana as he lives out of state. Recently we signed a lease sight unseen with a couple who are moving from out of state and have proven to be extremely difficult in ways too numerous to list. Basically, they have been making extreme demands and refusing to send back a clean addendum to the lease as promised. The landlord/property owner is extremely stressed out about all of this and has decided he no longer wants to move forward with renting to these individuals. There is a section of the lease that was signed that states 'If owner is unable to deliver possession of the residence to the residents on the agreed date for any reason, the owner may immediately cancel and terminate this agreement upon written notice to the other party at the last known address, whereupon neither party shall have liability to the other.' We sent their deposit check back with written notice and now they are extremely unhappy. They have 2 weeks before the move in date, which seems to me to be a reasonable amount of time to secure lodging elsewhere.

Can they legally sue us with the section mentioned above present? Doesn't the landlord have some say in who he rents his property out to considering the change in their needs/promises etc?

 

[STEPHAN]

Are you a licensed real estate professional so that you are allowed to manage someone else's property?

 

[Songbird1984]

Are you a licensed real estate professional so that you are allowed to manage someone else's property?

To my knowledge, that's not required in our state.

 

[FlyingRon]

That's not required in our state.

The Montana BRR seems to disagree with you. Property managers must be licensed.

 

[Songbird1984]

Can you offer any helpful advice? I'd appreciate it.

 

[Zigner]

Can you offer any helpful advice? I'd appreciate it.

Yes, stop illegally managing properties. The reason for the licensing is to help avoid situations like the one you have caused.

 

[Insane Jane]

Can you offer any helpful advice? I'd appreciate it.

Are you using a generic lease?

 

[Songbird1984]

Are you using a generic lease?

Thanks Jane, for the constructive feedback.

The landlord provided a generic lease with a few minor addendums added.

 

[Insane Jane]

Thanks Jane, for the constructive feedback.

The landlord provided a generic lease with a few minor addendums added.

So, if I'm getting this right; The Landlord uses leases that may or may not stand up.
The landlord sent a signed contract to the perspective tenant. They altered the lease, signed it and sent it back. Now the Landlord wants to void the contract.
This is where I recommend legal advice, beyond the internet.

 

[quincy]

What is the name of your state (only U.S. law)? Montana

We help an older gentleman manage a residential rental property in Montana as he lives out of state. Recently we signed a lease sight unseen with a couple who are moving from out of state and have proven to be extremely difficult in ways too numerous to list. Basically, they have been making extreme demands and refusing to send back a clean addendum to the lease as promised. The landlord/property owner is extremely stressed out about all of this and has decided he no longer wants to move forward with renting to these individuals. There is a section of the lease that was signed that states 'If owner is unable to deliver possession of the residence to the residents on the agreed date for any reason, the owner may immediately cancel and terminate this agreement upon written notice to the other party at the last known address, whereupon neither party shall have liability to the other.' We sent their deposit check back with written notice and now they are extremely unhappy. They have 2 weeks before the move in date, which seems to me to be a reasonable amount of time to secure lodging elsewhere.

Can they legally sue us with the section mentioned above present? Doesn't the landlord have some say in who he rents his property out to considering the change in their needs/promises etc?

If any material terms to a contract are altered, these modifications must be agreed to by both parties.

Seek out professional legal help in your area should the would-be tenants sue.

And, if you intend to manage properties in the future, you should get the proper license (unless you are exempt from the requirement). You have done the older gentleman/property owner no favors by not knowing the laws in your state.

 

[Zigner]

So, if I'm getting this right; The Landlord uses leases that may or may not stand up.
The landlord sent a signed contract to the perspective tenant. They altered the lease, signed it and sent it back. Now the Landlord wants to void the contract.

No, the LL altered the form.

This is where I recommend legal advice, beyond the internet.

Agreed, but to be clear for the OP: It will need to be the OWNER that pursues legal advice.

 

[Insane Jane]

No, the LL altered the form.
Agreed, but to be clear for the OP: It will need to be the OWNER that pursues legal advice.

Ok. Thank you.

 

[Ohiogal]

The landlord not wanting to rent the property to these people does not mean he is unable to deliver the property. The landlord has breached the lease and he may very well be sued.

 

[quincy]

Here are the exemptions to property management licensing in Montana: http://leg.mt.gov/bills/mca/37/51/37-51-602.htm

If one of the exemptions apply to you (and I am thinking that "b" might?), you should still know the laws in your state well enough so that situations like the one created here will not be repeated. The owner of the property has been made vulnerable to a suit filed by the would-be tenants due to the fumbling of this lease agreement.