30 year lease option instead of land contract - Posted by ralph

Posted by Carol on June 12, 2000 at 12:13:00:

I seem to remember comments by Bronchick and others that IRS may consider anything longer than a 3 yr l/o as a sale. Check it out… or wait for more substantive answers!
Carol

30 year lease option instead of land contract - Posted by ralph

Posted by ralph on June 12, 2000 at 11:42:37:

is it legal to have a 3o year lease with option to buy instead of a land contract, and if so - how should i go about writing it up.
all help will be appreciated. thank you!!

Re: 30 year lease option instead of land contract - Posted by Mark (SDCA)

Posted by Mark (SDCA) on June 14, 2000 at 13:04:52:

This is the technique the Wooleys use. They said that their lawyer looked at it up and down and it DID pass muster. Unfortunately, they are not around anymore to comment. (I think this is part of the REASON they are not around!! hehe)

Mark

If it looks, walks and quacks like a duck… - Posted by Sean

Posted by Sean on June 12, 2000 at 13:07:03:

…then it’s a duck!

Similarly if you sign a 30-year triple-net lease-option agreement where you pay to the owner a certain dollar amount and you take over the payment of taxes, insurance and maintenance and you have the option to purchase the property at the end of 30 years for $1.00 … then you have a purchase agreement, not a lease-option.