Hi, I currently am renting a house and have a 1 year lease that ends at the end of June. In the lease the landlord put that we have an option to rent for a second year for $50.00 more. 2 months ago the landlord called us and said he is going to sell the house and wanted to know if we wanted to buy it. We signed an agreement with him and went to a mortgage broker who ordered an appraisal on the house which we paid for. The appraisal showed that in the front room of the basement had a leak and they wanted to find out where it was coming from before they put a mortgage on the house. The landlord called us and said he didn't want to fix anything and if the broker couldn't "swindle" around it then he won't sell. So we ask about the second year lease at the price stated in the lease and he said no he is going to raise that price. It is too much so now we have to move. He also couldn't pay the water bill and ask us to pay it and when we went to the city to pay it they told us he did not have a permit to rent it. My question is this, is our lease still legal since he don't have a permit? Also, can we take him to court to get our fee back for the appraisal since he backed out? Thank you very much for any help you can give us...

Do you have a mortgage contingency clause? Home inspection clause? Did you deposit any money for the sale of the house? What is the source of the leak? Is it serious? he may have to honor the first lease option. Consult an experienced local realtor.

I suggest that you consult a local real estate attorney. If you want the house, I suggest asking for a reduced sales price and getting the appraisal issue fixed. If not, you should review the lease and its provisions for giving notice that you are not renewing the lease when it terminates. As for the lack of rent unit license, well discuss that with an attorney, but there is still a contract and you receive a benefit, so I doubt that would get you out of the lease entirely. It just means the landlord needs to pay the license fees owed and comply with any requirements that way. Consult a local real estate attorney.