My husband and I entered into a lease with purchase agreement in April 2010. Under this agreement, we have until February 2011 to secure a loan to purchase the house, but the lease agreement is in effect until the end of April 2011.
This is the specific language of the contract:
"Such purchase contract is incorporated by reference into this agreement and made a part hereof. The lease shall be for a term of one year commencing May 1, 2010 and ending April 30, 2011. Tenants agree to pay the rent hereinafter mentioned and the other charges as required in this agreement and tenants further agree to do everything that is required of them by the terms of this agreement."
We won't be able to secure a mortgage by the necessary date (financial matters have changed - we can't afford the monthly rent NOW) - but we still have several months left until the Feb date. There seems to be no provision for breaking the lease in the contract (either penalties or mention of how that would go), but we really don't want to stay in this location.
What can we expect if we give sufficient notice? I know we'll lose the money that's been applied to the closing costs/downpayment for the house. But can the landlord expect us to pay for the remaining months? How could we best handle this matter (the landlord seems to be very nice, and understanding).