Legrand's Lease / Purchase Contracts..Need Advice - Posted by Mark (Tampa)

Posted by JasonTX on December 26, 2000 at 17:30:45:

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Legrand’s Lease / Purchase Contracts…Need Advice - Posted by Mark (Tampa)

Posted by Mark (Tampa) on December 25, 2000 at 09:35:17:

I recently took control of a very nice house and used Legrands Sales Contract in conjunction with his Lease Agreement. I took $6000.00 down on the sales contract with another $3000.00 due to me by the 15th of January. It also says buyer has 36 months to close on the deal. The Lease Agreement basically says that $100.00 of each months rent goes toward purchase price. They are the standard forms found in Legrands Lease/Option Course.

On our first month I had to go chase down my rent because tenant who checked out favorably said it must have gotten lost in mail. Since then we set up auto payment. We’ll see how that goes on 2 Janurary.

Here is my question: If the buyer defaults on the Sales Contract Agreement: i.e., does not come up with the $3000.00 by the 15th of Janurary, does this also void the Lease Agreement. My wife and I are thinking ahead to what may come about based on having to chase down the first months rent. Thanks for any advice.

Mark

Lease / Purchase Contracts - Posted by Bud Branstetter

Posted by Bud Branstetter on December 26, 2000 at 14:02:15:

Anytime you have a contract to purchase you are more suceptable to the tenant claiming to have an ownership interest. This includes them fighting an eviction and filing bankruptcy. On the other hand an option is rarely viewed that way. I like Bronchick L/O agreement because it clearly spells out the option terms. Courts here in Texas(homeowner friendly) have repeated upheld they have only an option. Don’t spend all that money. Save some of it in case you have to evict, litigate or do repairs. Take some of it and learn how to be a landlord. With 6K down I would probably be less inclined to do a through check although I know I should. Have a respectable late fee(s) in the lease agreement. Something like 5%($50-100) if they don’t pay by the first. Then a daily fee until you file for default.

Re: Legrand’s Lease / Purchase Contracts… - Posted by roy

Posted by roy on December 25, 2000 at 12:35:14:

I prefer Bronchick’s course, Selling Option to buy Beneficial interest in Trust, instead of selling real estate.
The Real property may not be tied up in a long law suit.

I have LeGrands L/O course

Re: Legrand’s Lease / Purchase Contracts… - Posted by will

Posted by will on December 25, 2000 at 10:50:53:

i was in exactly the same situation 2 years ago.(december deal,legrand forms , split downpayment )
tenants never came up with the 2nd part of downpayment and were always late w/rent .they were constantly inventing new excuses and taped all my phonecalls and later , right before closing , they tried (unsuccessfully) to circumvent me .
i am sure they would have sued me if i kicked them out in the process or if i couldn’t provide title .
so will your tenant , 6k is not to leave without a fight .and using a sales contract ( instead of a simple option agreement) will not help you in court .
ron’s way is ok but not bulletproof .
my advice :work with the tenant/buyer , hang in there and eventually you will collect all your profit .learn from your mistakes while getting paid for it .chances are next time you’ll do it right .

will

TX eviction/landlording - Posted by JasonTX

Posted by JasonTX on December 26, 2000 at 17:03:52:

Bud,

I’m also from Texas and about to get started in Lease/Options. Are there any particular reference materials you would reccomend for learning landlord/tenant/eviction laws in Texas?

Thanks in Advance for a reply

Re: TX eviction/landlording - Posted by Bud Branstetter

Posted by Bud Branstetter on December 26, 2000 at 17:22:41:

The best thing to do is get a copy of the property code. It is online but I don’t have the reference at my finger tips. The other is the “Redbook” on landlord tenant issues. You may find some references under www.maxpages.com/law. Brian Dunklin has had some seminars on real estate law here in the Dallas area. The local Real Estate club has had a local judge give a presentation on evictions.