Posted by Matt KY on July 02, 2002 at 18:45:02:
I forgot to say, im going to see a motivated seller tomorrow and im pretty sure she will want to do a lease option, so i need to know this soon or im up a creek! help!
thanks!
LEASE OPTION question… - Posted by Matt KY
Posted by Matt KY on July 02, 2002 at 18:43:51:
If im sitting at the seller’s house writing up an agreement, what do i put in the blank…
“This lease option agreement goes into effect on _________”
I know if it was a vacant house, it would be the next day. But if a house is occupied, how does the seller know when it will be vacant? will i have to have a definite date set to do the deal?
i just dont want to start having to pay payments and the sellers are still in the house.
thanks so much for the responses!
Re: LEASE OPTION question… - Posted by DB
Posted by DB on July 03, 2002 at 10:50:34:
I agree with wpage. Have you signed up any previous deals? If not, I would want to know how to fill out a contract. I would want the seller to think that I know what I’m doing!!
Instead of using: "“This lease option agreement goes into effect on _________”
Try this: “Possession shall be given to the Tenant/Buyer on _________”
This way, you and the seller have agreed when YOU will take possession of the property.
We had a seller who was moving to NC and wanted to sell her house here in Florida. She wasn’t going to move for another 2 weeks. We signed up all of the paperwork, and put in the contract we would take possession in 2 weeks(the actual date)ex. 6/23/02
Of course, we made sure she covered an extra payment! lol
I would review your contracts or have an attorney explain them to you. You MUST know how to fill them out!
Good Luck, dave
Re: LEASE OPTION question… - Posted by wpage
Posted by wpage on July 02, 2002 at 22:01:29:
Matt I don’t want to insult you or be rude but if you do not know how to fill out the forms with such a basic question then my thought is that you are no where near ready to start doing real estate transactions. I think it is time for you to do some more studying and reading of some good books. sorry. just some words of caution.wpage
Re: LEASE OPTION question… - Posted by Mark W-MD
Posted by Mark W-MD on July 02, 2002 at 21:23:21:
I’m no Atty but would word the Lease ‘lease term will commence August 1 or upon landlord providing tenant with keys and full unencumbered possession of premises, which ever date is later’. Something to that effect.
One thing to keep in mind, you may get alot of resistance to putting a phrase like “until I find a subtenant” into the lease. Put yourself in the sellers shoes, why would I let you tie up my house when you don’t know when you are going to take it off my hands. They are motivated to have a solution presented to them today, not more problems and uncertainty and oh yeah I might L/O your house.
A reasonable middle ground is let them keep marketing it and if they find someone first you have a first right of refusal and you either pull the trigger or you walk away immediately if you don’t think you can place a tenant there quickly enough.
I need to be able to look at myself in the mirror and not feel like I am tying up someone’s property with the intent of walking, if I can’t perform what I am telling the seller I am going to do.
Maybe it’s just me, but I don’t believe in uneeded weasel clauses. If you can lock a house up at a decent price and a bargain rent, then it’s time to go perform, not find a way out.
Will get off my soapbox, Good Luck! Mark Williams
Re: LEASE OPTION question… - Posted by BIGDADDY(MD)
Posted by BIGDADDY(MD) on July 02, 2002 at 21:13:34:
You could put in verbage similar to this, the day after the Seller(s) VACATE the Subject Property. Or, 2 months after the Seller(s) Vacate the Subject Property. It really all depends on what you can get in your favor during the negotiation process.
Re: LEASE OPTION question… - Posted by Brian M. Powers(MI)
Posted by Brian M. Powers(MI) on July 02, 2002 at 21:04:01:
i have never seen a L/O agreement that uses the words “goes into effect” but if you have had your attorney review your agreement then that is fine, i guess.
the agreement should start the day all documents are signed. you should then add that payments are not to begin until you have found a suitable tenant/buyer, or for at least 2 months out in to the future if you can negotiate that with the seller.
BMP