Legal Question for Lease Option Experts - Posted by Scott

Posted by Todd(ID) on February 28, 2002 at 12:45:57:

you use seperate lease and option agreements. If you have to evict the only thing you would show the judge is the lease agreement. I still try to keep the rent credits to a minimum though. I would look at Bronchicks material, he goes over the legalities of rent credits thoroughly.

Legal Question for Lease Option Experts - Posted by Scott

Posted by Scott on February 28, 2002 at 12:06:53:

I was discussing with a real estate attorney (I live in Oklahoma) a lease option contract I was putting together. He cautioned me that I should not credit the tenant/buyer with money they are paying each month to me in addition to the rent payment toward the purchase price or down payment. The reason he gave was that a dispute over the contract in court could lead to an interpretation by the judge that the arrangement is really a contract for deed, thereby requiring me to go through a foreclosure action instead of eviction. In Oklahoma, I can have somebody out of a house in three weeks easily. Under foreclosure, I’m looking at attorney’s fees and a year in the courts (I’ve been told).

I’ve been studying the LeGrand Lease Option course. He encourages getting as much in way of monthly payment from the tenant/buyer as possible by using the “purchase credit” to leverage them.

Is my attorney a Nervous Nelly? Is LeGrand setting me up? Anyone had an experience they can share in this regard?

Odds are in your favor… - Posted by Todd_OH

Posted by Todd_OH on February 28, 2002 at 16:40:21:

In addition to what Todd(ID) has mentioned, yes, your attorney is a Nervous Nelly. However, most attorneys are. The only place I have seen aggresive attorneys is on TV or on the OTHER side of the courtroom :slight_smile:

Speaking from the standpoint of someone who has experienced a lot of “worse case scenarios”, the scenario your attorney is concerned about is one that I have yet to experience in 14 years. Is it a possibility? YES. Is it likely? NO. The odds are strongly in your favor. IMHO.