Re: Option to purchase or buy outright? - Posted by StevenS(CPA)
Posted by StevenS(CPA) on July 25, 2007 at 11:15:20:
The most important thing you should do is have your option recorded. That will cloud title if she tries to sell.
Make sure you get a option for at least a year, because tenants (especially ones staying for free tend to be very slow in moving out).
Get the house at today’s price, subject to apprasial at or before option period is up. That way if the property value goes down you can renegociate or get out of the deal.
Spell out everything to be included in the purchase contract such as house to be vacant and everything to be in working order, ect.
Lastly, do not put very much money into this deal. It sounds very shady and its too long to be considered a go use of your funds.