Real Estate Contract or Lease Option ? - Posted by Wilton

Posted by Carolyn on December 29, 1999 at 16:46:40:

In real estate there are generally two main contracts that most Realtors use routinely. One is the buyers contract and the other is the sellers contract. They each have different language specific to the client they are working with. The sellers contract is a listing agreement. The buyers contract is used for the purchasing of property and may contain buyer brokerage agreements. Many Realtors (if they even know anything about how a l/o works, most do not!) do not want to be bothered with l/o’s and that is due mainly because brokers discourage their use because the agent and broker both have to wait for their commissions. So brokers in my experience, do not even train in their use or the advantages to the seller or the buyer for that matter. All the more for you and me.

Real Estate Contract or Lease Option ? - Posted by Wilton

Posted by Wilton on December 28, 1999 at 21:15:50:

I have always bought with a “buyers” contract. This is a very benefical contract for the buyer, including extended closing time,(I can show the property during this time)
This contract can be recorded,allows substitution of collateral, sellers financing can become subordinate, many other benefits to the buyer…I have always thought this was the best way to BUY. Now as for selling …lease with option, with some of the payment going toward the down payment when they buy, receiving more rent than otherwise, I believe is prefered.
Am I overlooking advantages in buying with a l/o .
I have read the contracts, buy maybe something is getting by me. Appreciate any comments.

Re: Real Estate Contract or Lease Option ? - Posted by Bud Branstetter

Posted by Bud Branstetter on December 30, 1999 at 10:31:02:


Buying and selling depends on your cash and energy. L/O allow you to make money without using your own. Obviously you are using the sellers. The other advantage of using L/O is being able to control at a fixed price in todays dollars. If prices go up you win. If values go down you you do not exercise your option.

Re: Real Estate Contract or Lease Option ? - Posted by mike

Posted by mike on December 28, 1999 at 22:42:04:

I`m sorry but I am a newby to all of this,can you explain in more detail what a buyers contract is and how it works?I would greatly appreciat it.Thanx