Posted by Jim IL on February 26, 2001 at 19:06:00:
John,
To me a closing date is when title transfers, so this would be when the option is exercised.
When talking to sellers, in the first or second meeting, whether that be on the phone or in person, I do have a tendency to say “closing” when referring to the signing of the agreement between us.
This is simply because to most sellers not knowledgeable in RE, the term “closing” means when their problem goes away.
I’m not so sure I understand your question about option money or down payment.
They are two different things.
Sometimes Option money can be used toward or as “Down payment”, depending on how the lease and option agreement is written, and the lender you are using for the end buyer.
Can you pay the option money over time?
Sure, anything is possible because you negotiate with the seller for this.
Frankly, I almost never pay any option money when I buy, but my tenant/buyers ALWAYS pay option money.
I hope this helps a little anyway,
Jim IL