Homebuyers prohibited from entering house until 2053,
A prestigious home recently sold for $1.4 million less than its estimated value due to a strange contract clause.
This unusual deal took place in the Russian Hill neighborhood of San Francisco, involving a periwinkle-blue 1920s house.
The house sold for just $US488,000 ($753,000), a fraction of the $US1.4 million ($2.1 million) price expected.
So, why such a steep discount? The new owner is prohibited from moving in for an astonishing 30 years.
The house is currently occupied by a tenant, protected by San Francisco’s strong tenant protection laws.
In 2018, the owner, Kenneth Goo, signed a strict lease agreement that granted occupancy rights until 2053.
Sandra Lee, 83, was the tenant when the lease was signed. She has lived there with her daughter Cheryl.
Sandra and her 66-year-old daughter, Cheryl, have reportedly continued to live in the house since Kenneth’s death in 2018.
To complicate the situation, Todd Lee, the homeowner and landlord, is actually Sandra’s son.
Earlier this year, a bitter family feud erupted, and Todd decided to list the property for sale secretly.
Receive the latest property news and advice directly in your inbox
However, Todd was unaware of his grandfather’s secret rental clause, which complicated the situation significantly.
Sandra Lee expressed her shock, stating, “If it wasn’t for the lease that my son didn’t know about…”.
She continued, “I don’t know where we’d be. It’s unfathomable, the deception, the betrayal – this is my son.”
The tenancy clause wasn’t the only obstacle prospective buyers had to face in this unusual deal.
The property sale was listed strictly as-is, with no guarantee of access for inspection or walk-through before purchase.
Additionally, the listing stated that the seller reserved the right to reject or counter any offers.
In the end, it seems the strange situation reached an unexpected resolution.
According to the New York Post, property records show that Sandra’s daughter, Cheryl Lee, purchased the house.
This means Cheryl won’t have to worry about a stranger living in her property for the next 30 years.
