Posted by Soraya on May 10, 2000 at 11:24:48:
1-Buy Wm Bronchick’s course on lease options. He has several disclosure letters that you have the optionee (tenant buyer) sign up front. They will keep you out of court.
2- In your option agreement do not mention rent credit.
Instead you may want to have your agreement read as follows:
Provided the OPTIONEE/TENANT is in possession of the property described above under a valid lease agreement at the time of exercise of this OPTION, $____________ of each monthly rent payment received on or before the 1st of the month under said lease will be applied as additional option consideration to reduce the purchase price if, and only if, tenant exercises this option to purchase.
Also have a paragraph that states:
It is understood that the option consideration does not constitute any equity in the Optionor/Landlord?s property. Optionee/Tenant can acquire equity only upon exercise of the option.