Opinion ID: 1191742
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Heading: exercise of option to purchase and duty to repair

Text: Tsern also argues that the trial court erred in ruling that Tsern's obligation to repair the elevator continued after Barton exercised the option to purchase the building because his obligations under the lease were extinguished by Barton's exercise of the option. The general rule is that a lessee's exercise of an option to purchase terminates the lease and all future obligations under the lease. Park West Village, Inc. v. Avise, 714 P.2d 1137, 1141 (Utah 1986); see also Ruark v. Peterson, 30 Colo.App. 162, 491 P.2d 75, 77 (1971); Summa Corp. v. Richardson, 93 Nev. 228, 564 P.2d 181, 185 (1977); Cities Serv. Oil Co. v. Viering, 404 Ill. 538, 89 N.E.2d 392 (1949); 51c C.J.S. Landlord and Tenant § 82(1)(b); 49 Am.Jur.2d Landlord and Tenant § 407. The general rule is illustrated by Park West Village, Inc. v. Avise, 714 P.2d 1137 (Utah 1986), where a lessee sought to hold a lessor liable for the expenses of installing a septic tank on the property. The Court ruled that the lessor was not liable for the expenses because the installation of a septic tank was not required until after the lessee had exercised its option to purchase the property. Exercise of the option extinguished all future obligations under the lease. The present case is distinguishable. Tsern's obligation to repair the elevator existed prior to the time Barton exercised its option to purchase the property and should have been performed prior to that time. Tsern's obligation to repair the elevator was also included in the contract for the sale of the premises. Once the option had been exercised and the parties took on the relationship of vendor-vendee, the rights of the parties were determined by the contract to sell. Willard v. Tayloe, 75 U.S. (8 Wall) 557, 19 L.Ed. 501 (1870); Foote v. Taylor, 635 P.2d 46, 48 (Utah 1981); Cities Serv. Oil Co. v. Viering, 404 Ill. 538, 89 N.E.2d 392, 402 (1949); see also Park West Village, Inc. v. Avise, 714 P.2d 1137, 1141 (Utah 1986); Summa Corp. v. Richardson, 93 Nev. 228, 564 P.2d 181, 185 (1977). But that duty did not affect Barton's right to abate rent under the lease. In short, Barton's exercise of the purchase option did not release Tsern from his obligation to repair the elevator.