Posted by Karl (OH) on October 25, 2000 at 14:36:16:
Is this the same seller with the assumable loan you talked about below? If you have Ernest’s forms, do you also have his material explaining the forms and the lease/option strategy?
The lease agreement lets you lease the home for a period of time. The option agreement lets you purchase the home sometime in the future (or not purchase it) for a specific amount. One gives you control (but not ownership) of the home, the other gives you the right to ultimately purchase the home, or allow your buyer to step in and purchase the home.
I just did a lease option deal. My lease agreement with the seller was to just take over his mortgage payments. My option agreement said that I could buy the home at anytime for the outstanding balance of the loan. If I wait until the loan is paid off, I just exercise the option at that time and the home is mine. The two agreements go hand in hand. But I actually found a buyer right away with bank financing, so I’m cashing the deal out.
Did that answer your question? There are others here with much more experience doing lease/options, I’m not sure why you’re not getting more responses to your question.