still learning about lease options - Posted by michael

Posted by Alan-Baltimore on December 28, 2000 at 17:27:27:

Mike,
If you are actually buying the property (taking title via cash, loan, seller carry, etc.), the closing will be done in the office of an attorney or at a title company.

If you’re lease/optioning the property, there is no closing since you are merely renting with the right to purchase at the negotiated price at a later time. This is no different than renting an apartment (i.e. there’s no closing-- you simply pay your security deposit and first (and possibly last) month’s rent, sign the lease and then you’re given the keys).

As far as your T/B, the same information applies–they are renters with the right to purchase (usually at a higher price than you negotiated with the seller). The closing takes place when they exercise their option at which time you will exercise your option with the seller.

Hope this helps.

still learning about lease options - Posted by michael

Posted by michael on December 28, 2000 at 13:49:32:

First off, thanks to everyone who has responded to my previous questions. Your answers have been very informative.

My first question probably has an obvious answer, I just have never been told. Once I have my contracts signed by my seller and T/B, where should I hold my closings and who is suppose to be involved?

Secondly, I have heard that having my T/B sign a quit claim deed will release him/her from any equitable interest in the home if they default on the contract,
is this true and should I do it with all my T/B’s?

Any advice would be greatly appreciated, Mike