Re: Well, - Posted by Jim
Posted by Jim on February 24, 2001 at 20:48:59:
L/C = Land Contract
Jim
Re: What’s so difficult?-It Isn’t!! - Posted by Shaun
Posted by Shaun on February 26, 2001 at 06:39:13:
Your’e missing the point Ed, at the risk of being obtuse. Non Refundable - No does mean No. Its not refunded–(IF) the option is not exersised, and that is clearly stated in all the Guru Option Contract. They also state it can be applied or credited to the purchase price if the Option is exercised. This is in the separate Option Contract. The sales contract (which goes to the lender) that both agreed to sign in the option contract, will show the same amount as the option, as down payment. Any monthly rental credit are simply deducted from the sale price and are not shown on the sales contract. Under your senario the Buyer would never get any use of the Option amount, even if he exercises the option and purchases. Thats not the intention or the purpose of a L/O program.
Re: I Agree With Ed…Here’s Why… - Posted by Shaun
Posted by Shaun on February 27, 2001 at 07:20:38:
House-not-so Rocky. Your mail address on this is bogus. You admit here and later, you don’t do Lease/Options. Like Ed, we guess, you stand on your mistakes? Since it is an area by your own admission, that you don’t deal in, maybe you might want to conceede you could be off the mark. The guy wanted advice on Lease/Options, neither you or Ed are giving him that, just a dissagreement on the meaning of words. We all are not on the same wave length. Adios.
Re: What’s so difficult?-It Isn’t!! - Posted by Houserookie
Posted by Houserookie on February 26, 2001 at 09:22:14:
The buyer may or may not have access to the option fee, but how many renters u know get the privilege of
getting back a portion of the rent to be applied towards the purchase.
I prefer paying tenant X amount per month to maintain property and for making prompt payment.
This is consideration fee in the sense of your discussion.
As for option to purchase fee, that’s non-refundable PERIOD. There is no obligation and no reason to credit it. An option fee reserves the property for the tenant to buy. You are paying the seller to wait to sell to you.
You can refund the option fee if you want, but why?
Anything is creditable to the t/b. The option fee, your car, your stocks in microsoft, even the equity in your home. But it is not required.
Re: I Agree With Ed…Here’s Why… - Posted by Houserookie
Posted by Houserookie on February 27, 2001 at 10:15:57:
Btw…I hope by now you know why I don’t post my email address. nomail@here.com … Hmmmm. that means No Mail Here? It was not intended as a “bogus” address to mislead anyone.
There are experts on this board that filter out email and spam. Those that ask me nicely, I actually give them.
Re: I Agree With Ed…Here’s Why… - Posted by Houserookie
Posted by Houserookie on February 27, 2001 at 10:11:10:
Shaun,
The mere fact that I don’t specialize in lease options
make you right and I’m wrong. Hmmmmm. Let me scratch my head a little bit.
This disussion is not a disagreement on words, we are disagreeing on the “meaning” of an option fee.
If you say it a few times it will make sense to you.
Option fee. Hmmmm. Is that a fee for the “consideration” of the option?
Where does it say “creditable fee”?
Btw…if you are going to comment on any reply don’t do so selectively, comment on the other ones too.
Allow me to say it again, “Giving back a portion of the t/b option fee is not a required element of a lease option contract.”
No one is saying that you can’t credit, IF tenant/buyer excises his option. If this is one of the terms in your contract, then do it…
Re: What’s so difficult?-It Isn’t!! - Posted by Shaun
Posted by Shaun on February 26, 2001 at 13:22:25:
It looks to us you have just made it more difficult. From all we could understand we were talking about a Lease and(with) Option to Purchase. In the true sense of the word there is no just renter involved here -exclusively. What we believe he was trying to do was sell a house, using a Lease with Option to Purchase. In that case normally you would have two documents, a Lease and an Option to Purchase. One of the main selling points is that the Lesor/Optionor/Prospective Buyer gets the advantage of leasing the place for a period of time, with or without rental credits and by paying an Option fee, gets the privledge of buying it some time during the Option period and is able to use the amount he paid in option fee as a credit or application to the purchase price, (IF) he buys it. If he doesn’t buy it(by exercising the option) his option fee is non-refundable. The Option fee can be credited or applied, only if the option is exercised and this is so specifically stated in the option. Is that difficult?
Re: What’s so difficult?-It Isn’t!! - Posted by Houserookie
Posted by Houserookie on February 26, 2001 at 13:47:02:
It’s not as difficult as u seem to be making it.
You can put any clause in any contract. If you stated this “specifically” in your contract, then by all means go through with it. In fact, you are obligated to do so.
However, to say that this is a “requirement” of a lease option is incorrect.
Yes the gurus of all the gurus and their gurus do it your way to make it more “appealing” to buyers.
But it is no requirement to credit option fee.
Re: What’s so difficult?-It Isn’t!! - Posted by Houserookie
Posted by Houserookie on February 26, 2001 at 13:51:43:
Let me repeat, “There is no requirement to credit option fees, whether it is excercised or not.”
You can if you want, but it is not a necessary element
to structure a lease/option.
No Creditability - Posted by Shaun
Posted by Shaun on February 27, 2001 at 11:36:55:
Hose Rocky. Yes,there are experts on this site who filter out offensive, anonomous and other postings. They are the site owners and web master and rightly, you must play by their rules. By not posting a valid e-mail address you loose some of your creditability. It appears that what you really want to do is play games. J. Reed is good at that, you must be some kin to him. Discussion with you is a circle. Thanks any way, but we see no sense in continuing it further.
Re: No Creditability - Posted by Houserookie
Posted by Houserookie on February 27, 2001 at 14:04:00:
You are good at one thing, Shaun, that is “name calling”.
Should I prove that to you too?
Btw…when I say spam, I am referring to people that visit sites like this, and suck out email addresses.
I am not referring to site owners.
How about a large size Taco please…
Re: No Creditability - Posted by jullio
Posted by jullio on February 27, 2001 at 16:07:08:
You both are arguing about nothing. Get a life and get on with it.
Re: No Creditability - Posted by Houserookie
Posted by Houserookie on February 27, 2001 at 19:16:43:
Thanks for your insightful comment. I like it how you define an option fee.