On a lease option deal the RE contract is the first step. Because the loan is likely non assumable then I will have them put it in a land trust. I will not likely get a title policy but will get a title report. It will take a day or so to complete the paperwork. The contract for the L/O is signed along with a performance mortgage. The mortgage along with the deed to the land trust may not be done for several weeks until I get a new T/B. I will also ask that the land trust be added as an additional insured on the fire policy. The land trust/performance mortgage will have me as beneficiary for anything greater than the purchase price. When everything is ready and I have the TB in place the deed to the land trust and mortgage will be recorded.
Posted by Ted Trunnels on March 01, 2000 at 10:37:29:
Hello to all. I’m in the need of a couple of answers if someone would be kind enough to take the time to reply. First of all, I’m just getting started in Real Estate and I have some of the concepts, but some of the little things are in question. After you come to terms with a seller and the contracts are signed, what next? I know each party will get a copy of the contract, but what is the next step? Do I need to have these contracts recorded into public record or what? If it’s a sale of a property I would say “yes”. But what if it is a lease/option deal? That’s where I am stuck. If I flip a property or purchase a property for retailing, I go through a title company with my signed contracts. The lease/option deals are the ones I am confused with.
If there is someone out there who could give me a chain of events for after I have the lease/option contracts signed, I would greatly appreciate your time! I know this request may seem a little basic, but I’m brand new at this!
Thanks in advance. See you next year at the convention!
Ted Trunnels