Posted by Ken (ILL) on February 25, 2002 at 17:33:06:
I agree that it can accelerate the DOS… IF you make it all one document. You can however acquire a lease and an option to purchase. These can be seperate documents and the option to purcahse does NOT have to be recorded. It should be witnessed and preferrably Notarized. You can also file an affidavit stating the agreement between you and the seller that you have an option. DO NOT let the seller know you are filing this. They may panic. It is just there in case the seller tries to renig. Then when the title gets searched, it shows up. If you are buying… who cares?
I am still confused. Say I get a house under contract with a seller under lease/op terms. Do I have the purchase agreement notarized and recorded by the county? If it is not recorded, does the seller have the ability to back out of the sale? By recording the purchase, would that not trigger a due on sale with the lender? How do you get around this problem?
Thank you
Re: Question about due on sale - Posted by Ken (ILL)
Posted by Ken (ILL) on February 24, 2002 at 24:17:25:
One thing to remember here. You are LEASING with a lease. You also have an option to buy the property. You currently are NOT buying the property, so the deed does not change hands. Therefore, the Due on Sale clause has no meaning at this time. If you DO decide to purchase the property, the DOS takes effect. Seeing as how you will be purchasing it at that time, the DOS will be fulfilled.