Posted by Mindy on January 19, 2001 at 15:55:16:
Putting a clause in the contract that says any assignment of the option on your part must be approved by the seller. That will give him some security and yet still allow you a way to assign it if needed.
seller’s questions - Posted by Vladimir_Chicago
Posted by Vladimir_Chicago on January 19, 2001 at 15:43:51:
Hi,
I wanted to l/o a house, but had a problem with a seller who was concerned that I might assign my option to someone with past or present Bankrupcy, who might simply stop paying rent.
What is the best solution for this problem, other than NOT having an assignment clause in my Lease Options contract?
Thanks to all in advance for response(s).
Vladimir
Re: seller’s questions - Posted by Rick(CA)
Posted by Rick(CA) on January 19, 2001 at 18:24:37:
Vlad,
Matt B. just posted a brand new article on the self help section concerning Lease Options. Go review it and see if that helps with your question in explaining and alleviating your seller’s concerns. You need to also express to them that the contract is between YOU and HIM, so YOU are liable for a bad tenant. YOU will be making the payments since your new L/O will be either sending the payments to you and you make the mortgage payment, or it will be going to a holding company to make the payments. In which case they will contact you if your L/O fails to pay.
Good Luck!
Re: seller’s questions - Posted by Jim IL
Posted by Jim IL on January 19, 2001 at 18:22:50:
Valdimir,
Leave an assignment clause in the agreement, but change it a bit.
Take a look at Bronchicks forms for some good language.
You can still have an agreement with an assignment clause in it, but make it so the seller has to give you permission to assign the deal.
Rather than run into problems with the seller not approving an assignee, you can out in language that allows the seller to approve, but no reasonably with hold that approval.
I’ve used this before to get sellers over the edge and sign, and it seems to work.
Just show the seller that you are willing to work with them and answer their concerns and 9 times out of 10 they will come around.
What the seller is really seeking here is re-assurance, so give them some and get the deal.
HTH,
Jim IL