Questions & Answers
Defaulting on cheques for buying a rented property
Hi
I have a question.
My landlord, from who I’m renting, asked me if I was interested in buying his house in April this year. I got into a conversation with him and few months later we agreed on a price.
This price of the sale was including the remaining rent ( until November 2018 ), we agreed on not paying the rent until we signed the agreement as the rent was included.
I gave him a security deposit ( not to cash ) cheque. Now, my situation totally changed and I nodded the money also. I recently had a health issue that was preventing me from buying the house.
So the landlord called off the deal and said I defaulted on the deal.
Anyway, he now cashed both the rent cheques and the security deposit and said he went to the police and I will go to jail within the next 24 hours. Please advise.
I’m willing to pay the remaining rent but need time to get the funds ( at least a week ) and also I’m worried about the security deposit of the sale as he deposited this cheque as well, 3 bounced cheques!
Dear questioner,
Please note that your question is missing a lot of details that will help me advise you. However, I will assume some facts and advise accordingly. If any assumption is wrong please correct me to advice you accordingly.
- Assuming you have signed an MOU to buy the property, and subsequently, you paid the down payment which is normally 10% of the property value.
In this case you have no right to claim back this amount because as per the signed MOU you lose the down payment if you withdraw from the deal for whatever reason that is related to you.
- Assuming you defaulted on regular rental checks. The landlord has the right to deposit the bounced cheques to the police department and impose a travel ban on yourself plus opening a civil claim to recover his funds.
I would advise you to prepare the funds as soon as possible because you will be detained if you try to exit the country or if you encounter any police department official who recognizes you as a wanted person.
If you require more assistance regarding the subject matter please do not hesitate to contact me directly through ae@elnaggarlegal.com and if you wish to book an appointment you can get in touch with admin@elnaggarlegal.com
