Posted by cc on June 08, 2000 at 21:30:44:
OK, thanks
Lease Option Question ( Why seperate contracts for lease & option) - Posted by cc
Posted by cc on June 08, 2000 at 20:53:44:
I can not understand why anyone except a lawer would suggest using 2 forms for what can be doon on 1.
Re: Your OPTION is marketable - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on June 09, 2000 at 17:26:30:
CC,
You could sell your option even with a tenant in the property (your sale would be subject to the lease rights of the tenant). You could make the sale of your option at any time. This might be an advantage to you. You might also think about trading your option off as a down payment on another property. There are a lot of “options” with an option (pun intended)…ED
Re: Lease Option Question ( Why seperate contracts for lease & option) - Posted by Ben (FL)
Posted by Ben (FL) on June 09, 2000 at 16:15:38:
WilliamGA was right. I just thought I’d add a little more clarification. In many states, the default for judges is “If it looks like a mortgage, and it acts like a mortgage…It’s a mortgage.” Most judges will look at a lease/option agreement, as shown on a single form, and determine that the tenant/buyer has an equitable interest in the property. In that case, you would not be able to simply evict them, you would be forced to foreclose on them…a much more costly and time consuming process.
As WilliamGA pointed out, when you evict, don’t volunteer to the judge that there is an option agreement. Of course, you cannot lie, if asked directly.
Re: Lease Option Question ( Why seperate contracts for lease & option) - Posted by WilliamGA
Posted by WilliamGA on June 08, 2000 at 21:20:19:
cc,
The reason you want to use 2 docs is in case you have to evict your t/b for non payment. Most times they do not even bother to show up for the eviction proceeding. When this is the case, just show the judge your lease and do not confuse the matter by talking about the option that they had.