Posted by Chris in FL on March 21, 2006 at 15:29:29:
Jay, I do lease/options, and I pay the taxes and insurance (frequently wrapped in with my mortgage). The amount the tenant/buyer pays every month needs to be enough to cover my expenses and profit (including taxes and insurance). I think that is the most common way. Also, protects you for a couple reasons: 1) you know they are getting paid, and 2) them paying taxes and insurance would be something they could use to argue that they have an equitable interest when, otherwise, they may not. No real benefit to them paying them (assuming you figure, as I am, that you would have to reduce what they pay to you if they did pay them). Good luck figuring it out.