Re: LO/Sandwich Lease - Posted by JPiper
Posted by JPiper on March 31, 2000 at 09:13:55:
I disagree with your answer.
As an investor you obtain an option with the seller?let?s call that option A. Then as an investor you create a second option with the new tenant/buyer?let?s call that option B.
I certainly could assign option A to a new investor?let?s call him investor B. The assignment of option A would require nothing from the tenant/buyer at all. However the property is still subject to option B?and still requires that you deliver title under certain conditions. Therefore, if you were going to assign your interest in option A, you would also want to assign your obligation/interest in option B. Investor B would therefore acquire option A on the property, which would be subject to option B.
The only problem with the above scenario is that failure of investor B to perform on either of the agreements could potentially create a liability for you. Therefore you might want to have your liability released by both the seller and the tenant/buyer. However this release is not necessary, simply prudent.