Posted by mjs on October 21, 1998 at 18:22:37:
thanks
Lease Option and offer to purchase at same time? - Posted by Adam (BatPro)
Posted by Adam (BatPro) on October 21, 1998 at 09:42:54:
If I were to write up a lease option with a seller, do I also complete the offer to purchase at the same time?
Adam
Lease Option and offer to purchase at same time? - Posted by Tom Brown
Posted by Tom Brown on October 21, 1998 at 16:22:37:
NO. The OPTION is a special type of purchase contract. It is considered an open ended purchase contract which is binding on the seller but not the buyer.If you have the option, you don’t need anything else.
From the way your question was worded, I don’t think you quite understand what an option is.
To be legal the option must have the following:
Identification of the Buyer and Seller
The amount of money or other consideration paid for the option–called option consideration
Description of the property
Amount of time during which the option may be exercised
Manner in which the option may be exercised
Escrow instructions to be put into effect if the option is exercised
Signatures of all the parties
You must have all seven of these items or you don’t have a legal option. It is also generally better if you are the buyer to have a separate lease and option.
Re: Lease Option and offer to purchase - Posted by Richard Jackson
Posted by Richard Jackson on October 21, 1998 at 11:44:35:
Adam,
That’s what I did. (See message “Neophyte Investor”) I’m still waiting to hear from some experienced investors to find out if that is the best way to do it.
Good luck!
Lease Option and offer to purchase at same time? - Posted by JohnBoy
Posted by JohnBoy on October 21, 1998 at 10:29:04:
Yes. You draw up your contract that includes the option to purchase with the preset price you agreed upon. Do not use offer to purchase. Use OPTION to PURCHASE. This allows you the OPTION to buy at anytime from the date you enter into the contract until the contract expires. This also allows you the OPTION to NOT buy if you decided later you don’t want the property for some reason. If after you were renting the property for a period of time and later found out the property needed some repairs that would be expensive to fix, you may determine you no longer want to purchase the property. If later on down the road the properties value was to drop dramatically for whatever reason, you have the OPTION to not buy the property. If everything turns out to your advantage then you exercise your option to buy the property at any time up until your lease expire’s.
Ad in all the terms you would use if you were to exercise the option. For example if the seller was agreeing that he would carry back a 2nd if you chose to exercise the option, you would ad the details of this in your contract. List all the terms and conditions on how the sale shall be handled IF you were to exercise your option.
Lease Option and offer to purchase at same time? - Posted by JohnBoy
Posted by JohnBoy on October 21, 1998 at 16:33:55:
It is better if YOU are the SELLER to have a separate lease and option agreement. If YOU are the BUYER, you want to have the lease and option tied into the same agreement.