Posted by Jim IL on December 28, 2000 at 23:47:24:
Charity,
I use a single form when I BUY via a L/O.
Using seperate forms is for when I sell via a L/O.
With the single form, EVERYTHING must be in it, or an addendum attached to it, and signed by ALL parties.
And, for future deals when selling, use two seperate forms.
Make the lease a lease only, listing the terms of it.
And in the option, put all the language pertaining to “Extras” and special stipulations.
I also include a line in my option agreement that “the option agreement is null and void if the corresponding lease is violated in any way as per the landlord/seller, and/or the home is vacated by the tenant/buyer.”
Good luck, and if you have any other questions before Saturday, post them here, or e-mail me.
I’d be happy to talk to you on or offline if you need to.
And, lastly, congrats on getting closer to your first deal.
Important L/O Legal questions… - Posted by Charity
Posted by Charity on December 28, 2000 at 21:28:19:
I am signing up my first L/O on Saturday (my first deal ever!) I have been told and have read in several places that you should use 2 different agreements on L/O - a Lease Agreement and an Option To Purchase Agreement. I have both, but I have also been told you should not refer to them in each contract. In other words, don’t refer to the lease in the option agreement and vice versa. My question is where to put your special stipulations? In which agreement?
I am planning to put the stip that if my T/B vacates before the end of the term that we will cover one month’s mtg payment after that and try to find another T/B. But if we don’t find one during that month, the home will revert back into the owner’s hands and we are out of the contract. The owner is agreeable to that, but I am not sure where to put it.
Also, the owner will be paying the 2nd mtg payment each month because the total payments exceed what we think we could get in rent. Where do I write that stip? They will be paying it to us and we will pay the bank. I have a Performance Mortgage, but I have no idea what it is, how to explain it or what to write into it.
Thanks in advance for the answers. You guys have been a huge help to me and I finally feel I making some progress!