Posted by Rocker Fella on May 17, 2000 at 24:03:01:
I havnt done my first deal yet, but what I would do is go ahead and use your form, change it to suite your requirements of the deal. Show it to the interested party as a rough draft only, make neccesary changes you agree on then take it to an attorney to finalize the correct wording and format. Then take it from there.
Help! What forms for L/O to Tenant? - Posted by Glen
Posted by Glen on May 16, 2000 at 20:54:41:
I just ran an ad in the paper for “RENT to OWN” on a house I haven’t been able to sell FSBO. I can’t believe how many calls I’ve had. I have 3 applications already. I didnt think things would happen so fast and I’m not prepared. I hope someone has the time to answer my questions. I’m confused! I printed Bill Bronchick’s purchase option form from his website. Do I just use that along with my own rental lease? His form doesn’t have any terms like a purchase contract has,like who would pay for title/title costs, what kind of deed owner would give etc. Is any of this necessary when tenant eventually takes this to get mortgage? Should I have them sign a
property disclosure form (which is required for all purchase contracts in my state)? Do I give them a tenant or buyer lead based paint Disclosure? Do I state any place on the Option that they have had sufficient time to consult a Attorney or obtain a property inspection. Any help or answers would be really appreciated.
Glen
Re: Help! What forms for L/O to Tenant? - Posted by Jim IL
Posted by Jim IL on May 17, 2000 at 13:43:50:
Glen,
You are correct in using two forms, a lease and an option form.
You could just take a purchase and sale agreement, change the title at the top to say, “Option to purchase real estate” and add addendums or clauses to cover what you need to.
As for the disclosure, thats a good idea.
I do use the Lead Paint one myself.
But, my option agreement, or purchase and sale agreement, both state that the home is being sold “As is”. (Since I usually take posesseion and fill it within a matter of days, there is not much history I truly know first hand anyway, just what I find when I inspect it at buying, or am told about by the sellers.)
As for stating that the T/B’er has plenty of time to get an inspection or attny review, forget that.
If you bring it up, they may use it.
And, if you do not, they most likely will never bring it up themselves.
The caliber of buyer you put in a L/O is by and large not very sophisticated, so they will be concerned with two major points;
Just be sure to NOT mention the option agreement in the lease.
And, DO mention the lease in the option agreement.
something like, “should the corresponding lease be violated in any way as determined by the landlord/seller, or the property is vacated prior to the end of the lease term, then this option agreement is null and void, and all option consideration paid is non refundable.”
Obviously the wording will be more eloquent, but I’m too tired today to write it for you any better.
You get my point though.
I basically use my favorite air tight lease with a seperate option agreement in all my homes.
So far so good.
Happy investing,
Jim IL
Re: Help! What forms for L/O to Tenant? - Posted by Scott SC
Posted by Scott SC on May 17, 2000 at 12:14:30:
Well of course I’m going to say it depends on your particular state’s laws, but Bronchick’s lease/purchase form is the way to go. The lease makes no reference to the purchase which will help you should you have to evict.
If the house is over 20 years old it would be wise to get a lead based paint disclosure form. You can pick one up at your local real estate company or goto HUD’s website www.hud.gov and look under forms.