Posted by William Bronchick on March 30, 2000 at 16:55:55:
If the seller dies, the property will go into his estate, but it is still subject to your option agreement. This is why I recommend having a performance mortgage which is a lien on the property. Security deposit laws change from state to state. Most states usually do not require an interest bearing account for a security deposit on a single family house unless you are acting as a property manager/broker.