Lease and Option as one agreement - Posted by Tim Jensen

Real Estate Investing Real Estate Law
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Posted by JohnBoy on February 04, 2002 at 12:15:19:

Actually, it’s not as long as the person puts down less than 20%, it’s as long as the buyer HAS less than 20% in equity at the time of default.

My opinion on this, is, why muddy the waters up by creating a potential problem where you may have to go back to a higher court to fight an eviction? If the tenant/buyer objects by claiming they have an equitable interest claiming they have a contract sale vs. a lease with an option, the Judge my dismiss hearing your case by sending you to civil court to have the matter heard before a civil Judge. That just drags out the eviction process. I would just keep it simple by using seperate agreements. That way you have a lease that stands on it’s own without anything else attached to it to call it a sale.

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Lease and Option as one agreement - Posted by Tim Jensen

Posted by Tim Jensen on February 04, 2002 at 09:53:10:

I believe this question is for Bill,

Lets say that a l/o is reclassified as an installment sale. In Illinois, as long as the installment sale is less than 5 years and the person puts down less tha 20% you don’t have to foreclosure.

My quesytion is this, since this is the rule, is having a Lease and Option all in one agreement a probleam as long as it is less than 5 years and the buyer puts down less than 20%?

Thanks,

Tim Jensen