Posted by Jimbob on October 28, 1998 at 18:19:04:
In a lease/option situation when you both sign the lease/option and you record it with the county as showing the public you have an interest in the property, get the owner to sign a deed for the option price and place it in an open escrow account. That way if she dies during the option period, the signed deed is already in escrow, and the cash from the new financing would go directly to her heirs or estate.
You’ll need to get an attorney to co-ordinate all of this for you so you dont miss any important steps.
As for the owner financing situation, it could be a little different because you’ll go on title if she carries a contract. If you were to refinance the owner contract and she died before you did this, the money would go directly to her estate or heirs.
In either case, definitely get an competent real estate attoney involved.