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:
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;
- How much per month?
- How much upfront?
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.