New House Query
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Anonymous
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I will try to make a long story short.
My sister had a good friend who she had known for years, since Elementary school. The friend and her husband had fallen on hard times financially and the friend was applying for house rentals with the goal to open up her own inhome daycare business. She was having a tough time since many prospective landlords did not want to rent to someone who would do daycare out of the home. My sister felt awful for the friend and wanted to help. So she and her husband bought a second house (they already own one) and rented the house to her friend so that the friend could open and run an inhome daycare from it. The friend was very grateful and ended up running a very successful daycare. She thanked my sister profusely and promised that she would never move. Sounds great, right? Well six months later, the friend notified my sister (through the mail) that she was moving out of state in sixty days! When my sister confronted her, she said that her husband got a job offer in another state that was too good to pass up! She told my sister that she followed the letter of the law because she gave my sister proper written notice. Since my sister just bought the house, in our state (CA) she can not just turn around and sell it. She is stuck paying a mortgage, taxes, etc. Plus she wasn’t even supposed to rent it out either - she was supposed to live in it for at least a yr prior to renting it out. She really wanted to help out her friend and risked a lot to do so. Now my sister is scared, depressed and angry. She is stuck with a second mortgage and she claims she really only bought this house to help her friend out. But her friend claims (now) that my sister bought it for selfish reasons ->> that her friend was actually doing my sister the favor here - - since she wasn’t even supposed covering the monthly mortgage payment and in the end my sister was getting a “free” house. I no zilch about real estate - who is in the wrong here?? |
Anonymous
| *the friend claims now that she was the one doing my sister the favor since she claims that she was paying my sister’s mortgage monthly payment and in the end my sister would be getting a free house in the deal. |
Anonymous
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Your sister is a massive fool with a huge appetite for risk.
She’ll just have to rent it to someone else. |
Anonymous
+100 Another reason you NEVER mix business with friends or family. |
Anonymous
| Can the husband move and friend then follow him 6 months later especially since she has a daycare business that presumably just started up? |
Anonymous
| Did either party have a tough conversation about long and short term what-if scenarios???? And write that into the rental contract ? |
Anonymous
| What does the lease say? If you sister had no lease that was her mistake. |
Anonymous
| She can’t force someone to live in her house. Your sister should find a new illegal tenant to replace the illegal friend tenant. Sounds like a stupid thing to do but clearly she can afford to buy a second house so she’ll survive with a loss for a few months. |
Anonymous
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Buying a whole house to help a friend is nuts. As is premising the deal on a promise to never move. Never?? The friend was to die in the house?
Why can’t she try to rent it to someone else or sell it? I’m not understanding why these are limitations. |
Anonymous
| I don't believe this story. |
Anonymous
| Good lesson to your sister to not be an idiot. |
Anonymous
OP Here: I agree. I love my friends but personally could not do something this grandiose. Unfortunately my sister cannot LEGALLY rent out the house for the next six months. 
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Anonymous
I would think so. However her friend gave notice to all the kid’s parents that she will be closing. I think she was required to give sufficient notice so that they could seek out different daycares. |
Anonymous
On what basis? |
Anonymous
OP Here: No lease - just verbal since they were good friends. Big mistake. |