Posted by CurtNY on March 28, 2000 at 12:07:55:
Sandra,
I’m not an attorney, but I don’t think this is true. Your don’t need the purchase agreement up front. You are assigning your interest in the property to your tenant/buyer not ownership. I would get a second opinion, this may be the case in your state but a second opinion is always worth while. Good luck with your RE Investments.
CurtNY
An attorney told me…is this true - Posted by Sandra
Posted by Sandra on March 28, 2000 at 10:18:15:
OK
An attorney told me I must have a signed LO agreement AND a signed purchase agreement. He said I need this signed purchase agreement at the start (when we first sign the LO agreement)
He said I need the purchase agreement in order to assign the contract to my tenant/buyer b/c they need this to get a commitment from a bank in order to get financing.
Is this true? I have read & read & read & attended my fair share of seminars & I’ve never heard of this.
The attorney pointed out that since I do not own the house, I can not sell property I don’t own.
BUT, BUT
I thought I would sign a purchase agreement sometime during the term of the option, not when signing the purchase.
I’m sooo sorry for rambling on about this.
Lastly, would I have to do the same thing when I am OPTIONING.
Thank sooooooooooo much for your responses!
Sandra
How many lease/options has he done? - Posted by William Bronchick
Posted by William Bronchick on March 28, 2000 at 17:37:28:
“How many lease/options have you done?” is the question to ask an attorney who has 2 cents on how to structure you deal.
WRONG: You do NOT need a purchase agreement to sell a property only an option. If this is not so in your state, ask the attorney the citation of the statute, ordinance or court case which says otherwise.
WRONG: You do not need a purchase agreement either. Most lenders will close simply on an option. Sometimes a title company will make a stink, so 5 minutes before closing you execute a “standard” board of realtors contract, cross out everything but the names and the property address, then staple a copy of your option agreement to the contract as an addendum.
Good luck!
Re: An attorney told me…is this true - Posted by eric
Posted by eric on March 28, 2000 at 13:26:39:
I also am not an attorney, but one once told me that you CAN option a property you do not own, if you yourself also have an option in it. You are not selling the property, only an interest in it. Specifically the law distinguishes between equitable title, which an option in essence grants, and legal title, which is assigned at closing.