Option To Purchase, Defined Time Frame?
I read somewhere that it is possible to write an Option to Purchase with an undefined time frame. Is this possible in Massachusetts. I have two situations right now where this would be mutually beneficial.
[ Edited by bennyboy on Date 03/09/2006 ]
Just set up a Land Trust for the father in his name. He can retain 10% and grant beneficiary interests to both his son and you. When he dies, you avoid probate and you and the son can work out the details easily as co-owners of the trust. [ Edited by mtnwizard on Date 03/09/2006 ]
An Option has a few crucial elements--one of which is a defined date in which it expires.
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An option without an expiration date will be held invalid.
What you want is a "life estate". Get the book for the state RE license prep and look it up.
LeaseOptionKing and Commercialking,
Good point!!! If he does it as an option, it HAS to have an end date.
Sheesh… I guess I was having one of my senior moments. LOL
Thanks!
: )
Glad the resident Kings could help. LOL
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I humbly bow to the willingness of both our Kings to point out the errors of my dumb answers. LOL-LOL
: )
Ck isnt there a tax issue with the IRS for a long term lease with option?.
I thought I read somewhere that they consider a long term lease an attempt to avoid taxation...
and let me state I am Dumber than dirt...
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I think CK is just talking about an Option. But, yes, the IRS can treat a L/O as an installment sale if for five years or longer.
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