Real estate purchase option contract - failure to give written notice = expiration?

[LeeH]

Tenant just called... Said he couldn't get funded. Covid just killed his business last year. Nobody looking for expensive oil paintings or art restoration services during a pandemic. Can we sign a 1 year lease?

I'm relieved. Never had to mention the 60 day notice. He also acknowledged the $6000 option fee is officially mine.

Every day that passed gave me more confidence that would be how it eventually went down, but I'm glad to have it official.

He was a bit bummed regarding loss of the option money. We agreed to renew him for another year at the same rent, which, based on current comps is right where it should be today. So, in other words, it was a bit high for the market for the past 2 years.

[Danimal16]

Glad it worked out for the both of you.

[LeeH]

Originally Posted by Danimal16

Glad it worked out for the both of you.

Worked out great for me... not so much for him. Either way you look at it, one of us was going to lose $50-60K. I'm relieved, but do feel for the guy.

This will certainly be the last time I do an option contract with a fixed price in the future. Lesson learned.

[Danimal16]

Originally Posted by LeeH

Worked out great for me... not so much for him. Either way you look at it, one of us was going to lose $50-60K. I'm relieved, but do feel for the guy.

This will certainly be the last time I do an option contract with a fixed price in the future. Lesson learned.

Lee,
From what I understand he is a good tenant and you are a good landlord. It just seems you two have a good business relationship that will hopefully continue. (And the anxiety of all of this episode is behind you). Best to you.

[Zeke]

I'm glad as well that things are settled. But what seems strange is his loss of business. If he truly works on fine (read expensive and valuable) art, then his business should be stable. No matter what, pandemic or recession, valuable goods remain valuable, and I'm talking about things rare, not expensive modern stuff.

He needs to reach out a little further.

[LeeH]

Originally Posted by Zeke

I'm glad as well that things are settled. But what seems strange is his loss of business. If he truly works on fine (read expensive and valuable) art, then his business should be stable. No matter what, pandemic or recession, valuable goods remain valuable, and I'm talking about things rare, not expensive modern stuff.

He needs to reach out a little further.

Having done accounting for small businesses for years, there are a lot of very talented people who inadvertently become business owners. Their talents are strong in their areas of expertise, but business is not one of them. Just because you're an awesome cook doesn't mean you should own a restaurant.

I've seen his originals and restoration work up close. I have no art background, but was amazed at what I saw.