If a landlord enters into a lease without permission from his mortgage company is this breach of contract or fraud?
A scenario where a landlord signs a lease with a tenant 3 months before move in and 1st months and security are paid. On move in day (today) I’m being told he can’t rent the place because he never got permission from his mortgage company to make his primary residence a rental unit and apparently they won’t allow it. This would make me think since he never had permission to rent and enter a lease he committed fraud and the lease was void from the get go or would you still consider it a breach notifying your tenant on move in day that he can’t move in and he will have to breach for the reason mentioned. Naturally my lease states to amend the lease there must be 30 days… he has given me notice this morning (move-in day) that he will have to void do to the fact if he does let me live in without permission from his mortgage company he could lose his house.
Would you argue fraud or breach of contract in this sitution if he never had any apporval from his mortgage company to make his primary residence a rental unit? He had 3 months to figure this out and didn’t do anything and tells me on the day I’m moving in that I can’t. Mainly I’m concered with getting the differential in my new 1yr lease I will have to find and it’s going to cost me a lot more money I had a good deal in place. Regardless of fraud or breach am I still entitled to the differential in living for for the 1yr breached lease with the new one?
What are the differences between fraud and breach of contract damage wise and law wise?
Also I’m in New Jersey where there’s strong tenant rights in place as opposed to other states.
Also the lease is very basic he was irresonsible in that regard of covering his end with a detailed lease. There is no legal out for him in the lease if anything the basic lease is screwing him worse.
Apparently to make your primary residence a rental unit there’s certain requirements… requirements which he’s not in compliance with so they won’t allow it. All of this information could have been obtained in the 3months I had my lease in place rather he sends me an email on move in day (today) saying he has to void the lease… if there even ever was a legal lease in place.
Playing devlis advocate….
How could it be a breach if legally he couldn’t even enter into a contract without their permission? Wouldn’t that void the lease leaving my only option for recourse fraud?
Wouldn’t the lack of the mortgage companies apporval automatically void the lease? How is it still binding if he legally could never enter and sign a lease?
There is going to be a massive financial differential in my new lease. For this reason would it be better to contact an attorney as opposed to take this to small claims court? Understand my landlord has given me no notice regarding this breach he’s told me today in writing on move in day… basically it’s not possible to screw a tenant any harder then waiting until moving day to breach a lease. I think the judge will see how irresonsible he acted and award the differential between the breached lease and my new lease. My breached lease was for 600 a month utilities included for a 2br 2bath. Even for a 1 br it’s minimally 900 a month plus utlilites… maybe he would have an out if he didnt’ give me notice same day as move in but he did.
It appears if there were every a situtation where a landlord has to pay the rent differntial with the new lease this scenario would be the definition… landlord tells tenant on move in day giving no notice of the breach putting him on the streets… I can’t think of a more sob sitution.
There was not even 1 day notice of this… this is all coming as a surprise on move in day.
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