Re: Lease Option–Equitable Interest–Question - Posted by Innovator
Posted by Innovator on March 23, 2006 at 04:02:00:
According to the Law, here are just 4 things that if any one of them takes place, will constitute a claim of equity.
- Pre-Determining a Purchase Price or Discounted Buy-Out
- Collecting an Option Deposit of more than 1.5 times the monthly rent, especially if it is used to reduce or be applied to a Purchase.
- Collecting or applying a Rent Credit toward a future purchase.
- A Tenant that has both a Lease and an Option on the same property regardless if they are separate documents.
Lease Purchases and Options are now being ruled as Delayed or Disguised Sales in the eyes of the law (check out NC and TX new laws as pertaining to L/O). If the law isn’t in your state yet, the laws in those states where they do exist will establish precedence if you get challenged by a good shark attorney.