Option contract ? - Posted by Michael NM


#1

Posted by Jimbob on October 28, 1998 at 18:19:04:

Michael,

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.

Jimbob


#2

Option contract ? - Posted by Michael NM

Posted by Michael NM on October 28, 1998 at 14:38:50:

If I (the buyer) L/O a house and the owner dies during the option period how is this handled? What would apply in an owner finance situation. My landlady, who I’m thinking of making a purchase offer to, is elderly and not in the best of health. I don’t want to get tied up in court with her family in the event of her passing.

Thanks,
mh


#3

Re: Option contract ? - Posted by Rob FL

Posted by Rob FL on October 29, 1998 at 16:55:43:

Make sure your contract says something like: “The terms of this agreement apply to seller’s heirs, devisees, and assigns” if not the option may become void upon her death. I am not a lawyer.