It has been a while since I visited this forum and I see it has changed quite a bit. I remember it from the early 2000s and then the bubble days before the crash.
I came here today to ask a question that I could not find in the archives. For the first time in my life I have decided to do a lease option. I am the seller, and I am using a realtor who has found me a suitable tenant-buyer. We have agreed upon an option deposit of $3,000. The realtor says that the option money is to stay in her brokers account until the house is purchased, in about a year. I don’t like that arrangement; I believe that I should hold the money or that my attorney should hold the money. For those of you who rent with option, what do you do? Any suggestions would be appreciated. Thanks.
Not a lease option person…BUT…I am VERY careful as to who has access to my $$$.
What sort of reason does the broker give for the $$$ to remain in his/her account. I can think of none.
If the option is NOT exercised I suspect that with the broker holding it you will have a very difficult time in getting it.
It appears to me that the broker is in reality trying to protect his/her position for getting paid if things do not go as planned and the option expires.
Do not know what your option agreement says…BUT…UNLESS it specifically says she holds it, and you have agreed, then get the $$$ and put into your bank account.
You are giving the T/B an exclusive right (at his option) to purchase real property in exchange for valuable consideration (in this case $3k).
T/B gives $3k to own the rights to purchase, tying up your property for a period of time.
No reason to structure this deal as a future consideration and thus held by 3rd party.
This is not a rental security deposit.
This is not an earnest money deposit.
You give the option in exchange for a non-refundable option consideration.
You also need to decide (and memorialize in the contract) whether the option consideration applies towards the down payment or not.