Long story short we signed a 1 year lease extension in Feb. that was executed by the property manager. Just recently the owner decided that she wanted to sell the property, but was somehow unaware that we had already extended our lease. I have a copy of the executed lease in my hand, but the owner is saying she didn't approve the extension. Is my extension valid? Should I just stand my ground that we have a lease and let the PMC and the owner fight it out?

The way it is worded in the lease is "This lease is contingent to owner/mgmt. approval." does / mean or or and in the legal world. My understanding is that the property manager has delegated authority to act on the owner's behalf.

How would you handle this? What questions should I be asking?

Any resources I can read to further educate myself about this situation are appreciated. TIA

Who signed the lease? The owner or property manager?

Property Manager signed/executed the extension. The owner is saying the PM didn't have permission to do so even though she approached us (via the PM) the week before she decided to sell to see if we wanted to sign a 2 year extension. An offer which was then rescinded when she decided to list the property. How it wasn't communicated at that time that we had already signed a lease extension is beyond me. We haven't received anything in writing about any of this other than a copy of our contested lease extension. It has all been phone calls and hearing conflicting things from the selling agent and the property manager. We are now under 90 days until the current lease expires and the contested extension is supposed to take effect.

I'm trying to come to an amicable resolution to this, but am feeling some pretty raw feelings about the situation. The owner has already threatened the PM to get lawyers involved so I guess it could really go anywhere.

Not a lawyer and this isn't legal advice. I can see your issue and frustration. I'm not sure how the owner was to indicate acceptance, other than by the PM signing the lease. Consider how this was handled when you signed the first/original lease. Also consider how long it was between your execution of the extension and the owner notifying you that they didn't want the lease.

This issue should be between the owner and the PM. The PM should have to answer whether the offer to extend was made by the owner prior to the PM offer to you. The PM should also have to answer did they have authority and approval to sign the extension. The PM is hanging out, if they offered or signed (even with that clause, especially since they don't have some closure provision, like "unless revoked in X days") without owner approval. You also have the owner's attempts to extend and your reliance on their actions. That just means you've got a reasonable case, but a fight on your hand. The owner wants no occupancy and you're the only one to solve the problem, so those with money at stake (owner, PM, selling agent) will put pressure on you, regardless of their fault.

What do you want and what kind of trouble or fight are you willing to endure? You would think it would be hard for them to evict you, but is the expected hostility and expense what you want? They should be motivated to settle, but sometimes people are irrational.

My experience was signing a lease that had been owner approved and delivered by the leasing agent, but the owner was out of town for signature. I signed it and returned it, with the rent and deposit checks. It wasn't signed a day later when she returned. When we followed up, someone had bid a higher price and longer term after our signed agreement that had been previously accepted (but not signed) by the owner, without even giving us a chance to see if we'd reconsider our terms.

If it were me, I would consider what it costs me to do something else and make that proposal and hold my ground. Someone should break based on the needs they have and the leverage you have. I wouldn't want to live in a house under adverse circumstances. It would be miserable for both parties. Good luck.

This does not constitute legal advice. If your current lease was executed by the current property manager then I would think that you are on good footing to hold your ground. However, if your current lease was signed by the owner and there was no document stating the current PM responsibilities then you might be on shaky ground. Being a landlord of 11 rental units, I think if you are able to discuss the issue face to face you should be able to work it out. If you have a signed lease agreement with either the PM or owner you are in the drivers seat especially if your current lease just has the PM signatures on it.

Last two months rent free, and you will leave without issue.

That's a pretty good idea.

Oh yeah, and full refund of deposit.

Thanks for the responses and the laughs. The last time I went down to the PM office I was told we were good to go so things seem to change even with face to face conversations.

OP, if you get kicked out, y'all can come stay at our place. Oh, and does rule #1 apply to the RE board?

In all seriousness, glad they changed their tune when you had a face to face. Please update if the situation escalates as I know an RE attorney in town who would do great in a situation like this.

Lol, depends who you want the rule 1 on. The change of tune was after the selling agent told me she had no knowledge of us already extending our lease. The PM said we were good until yesterday when she called my wife and said the owner was contesting. So it's back to where it was I might need that attorney's number not sure where this will end up. How much do you think it would cost for a RE attorney look our lease over and give us their opinion on the situation?

If both parties have signed the lease (you and the owner). She has to honor that lease until it ends.

Rossy. Did you get your issue resolved? If not, I would be happy to look into it further. This situation is too fact specific to give a general response.