Full question:
My father owns property in Rutherford County, NC that he has rented to a church group for the past 36 months (or so) to be used as a worship center. No written agreement was ever put in place. He has offered the property to them several times for sale but they have been unable to secure funding. Now they suddenly feel that the rent money they have been paying is considered payment toward 'rent-to-own'. Am I correct in understanding that since there is no 'written' rental or lease agreement, this would be known as 'month-to-month' and there is no obligation on his part to continue renting to them if he would rather sell the property outright?
- Category: Landlord Tenant
- Date:
- State: North Carolina
Answer:
In general, when there is no written lease, a tenant is considered a month-to-month tenant. Since your father has not established a formal rental agreement, he can terminate the rental arrangement at any time, provided he gives proper notice.
The statute of frauds requires certain agreements to be in writing, especially if they are for a term longer than one year. Since your father's agreement is oral and has no written documentation, it may not be enforceable. This means that any claims the church group has regarding a 'rent-to-own' option would likely not hold up in court.
Oral contracts can lead to disputes, as they rely on each party's word. If the church group claims there was an agreement for an option to purchase, this would be a matter for the court to decide based on the circumstances and evidence presented.
In North Carolina, a month-to-month tenancy can be terminated with a notice of at least seven days (N.C. Gen. Stat. § 42-14). Therefore, your father can choose to sell the property without continuing the rental arrangement.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.