Posted by Chris on February 09, 2000 at 03:46:08:
Steve-
Yes it is legal. It is called a sandwich lease/option.
If the person who is going to sublease would allow you to look at the contract they have with the property owner you will get most of your questions answered.
It would be wise to bring a copy of that contract to your attorney to ensure you are protected before going forward with this. One thing to look for is the subletting clause.
-Chris
HELP! L/O from people who L/O from the owner! - Posted by steve
Posted by steve on February 09, 2000 at 02:09:32:
Hi,
Is lease option a property from people who lease option it from the owner, safe? I know that I need to make sure the owner pay the mortgage, but what other pitfalls this deal might have?
regards,
Steve
Re: HELP! L/O from people who L/O from the owner! - Posted by Chris
Posted by Chris on February 09, 2000 at 15:16:45:
Re: HELP! L/O from people who L/O from the owner! - Posted by Steve
Posted by Steve on February 09, 2000 at 04:14:30:
Ok steve.
Heres the deal, your right you need to make sure the money is being applied to the mortgage. Trust me, your not going to want to see his lease agreement wit the owner because Im sure he paid less earnest money ,less rent and of course a smaller purchase price. Im not sure If he even has to show you his agreement with the seller. If you havent signed the lease option yet make sue you get the right to assign. If youve signed then Its too late. But if its not and you have that right then you can lease option it to someone else. As far as the guy who leased it to you you wont have to worry to much about him but you might have to worry about the owner not paying the mortgage. I might try to have all money put in escrow…that way you know its getting paid every month. I hope Ive helped a little.
Steve