Posted by Rocker Fella on May 17, 2000 at 16:03:55:
Does he sell just a book?
L/O Question…Does Seller have any say as to if you can Lease Property? - Posted by Rocker Fella
Posted by Rocker Fella on May 16, 2000 at 23:58:28:
Lets say I find a house for sale for $150K, I contact DESPERATE owner and we work out a lease option deal on property FOR OPTION TO BUY IN 1 YEAR FOR $120K. My intention is to then L/O it to someone else with a credit problem or whatever for option to buy in one year for $150k. Can the original owner/seller say to me…no! You Can Not!..and Will not lease MY house out to anyone else! I forbid you to do it! How Dare you!! I am leasing this house to you only!!!
Can he say that to me, or once we do the L/O is it always my right to do as I want with the property? Can I re-lease
it to someone else with out repercussions? Does the original owner/seller have a say as long as its not mentioned in our L/O contract? Is there any reason for the Owner/seller to even be concerned?
Re: L/O Question. - Posted by JPiper
Posted by JPiper on May 17, 2000 at 24:54:05:
I?m going to start with your last question first. Is there a reason for the Owner to be concerned over you subleasing the property? The answer is yes, there is a reason. In fact, in all of my leases it is clearly stated that no subleasing is permitted. Why? Because the party subleasing is an unknown to me. I would be uncertain of my lessee?s ability to put a responsible party into my property as a subtenant. The subtenant?s financial ability is unknown to me. The subtenant?s history in terms of his performance as a tenant is unknown to me. Further, there is the issue of whether my lessee can pay me if his subtenant does not pay him. Then we move on to damages. Will my lessee be capable of handling damages completely and in a manner that I would find appropriate, even in the event that his subtenant were responsible? You see where this is going. If the owner permits you to sublease, he is out of control?.and a variety of problems could then ensue.
Any owner with a modicum of sophistication in these types of matters is likely to have some or all of the above questions occur to him. And therefore, it is up to you to provide an answer to the above questions so that he will trust you to sublease.
But clearly it is within the rights of the owner to establish the groundrules of a tenancy. One of those has to do with the right of subleasing. Most standard leases will contain a provision prohibiting subleasing, certainly without written permission from the owner.
I don?t think you should enter into a contract under false pretenses. In other words, I wouldn?t leave this provision out of a lease, not mention your intent to the owner, and later just do it. You?re asking for a problem here. I think it is much better to have the right to sublease in your agreement, and then cover the issue with the owner. The repercussions are that the owner could file an unlawful detainer action against you and your tenant. So now you?re in a courtroom explaining how this should be your right, even though it is not covered in the contract. Would you win? I?m not sure on that one?.but if the right is covered in the contract you have no problem.
Don?t know whose lease/option agreements you are using?.but the ones I have seen always grant permission to sublease if you are the buyer.
JPiper
Re: L/O Question. - Posted by rocker fella
Posted by rocker fella on May 17, 2000 at 08:58:45:
Is there usually much resistance from seller/owners on sub leasing from the deals you have done? Will this be a common problem or obstacle to expect from owners? What books do you recommend that give you detailed step by step instructions on L/O?
Thanks
Re: L/O Question. - Posted by JPiper
Posted by JPiper on May 17, 2000 at 11:23:38:
I’d say this is a standard concern. But, it’s all in the presentation…which will be part of your learning curve. I recommend Bill Bronchick’s information…very detailed and legally sound. Joe Kaiser is extremely good from a marketing point of view and finding those motivated sellers. Both would be good courses if you intend to focus on lease/options.
JPiper