Closing A Lease Option
Okay...so I'm doing okay up to this point...I've done a few deals now. But, I'm a little confused about someting. See, the deals I have done I never brought to close I just assigned them to someone else because I needed money right then. The LO I do have I'm going to keep, but I don't understand how the close will work.
When my TB decided to exercises their option who pays the closing cost? I know they will pay some because they are buying, but do I pay the rest or do the sellers pay them? Also...where do I fit in at the title company when everyone shows up to finish the deal? Basically, how the hell does a closing work for a lease option?
Thanks,
Mitchell
Anybody? Come on....give it a shot
who pays what should be laid out in the lease/option agreement. this is a lease and a sale agreement and should have all the parts necessary to close the deal. my buying L/O contract states that buyer and seller split the closing costs, same with my selling contract.... so at closing I pay half to buy the property in one room, then go to another room and pay half to sell the property, assuming someone actually exercises their option which is rare
Have Fun!
Ted
Another question. When I go to close with the sellers...where do I get the money from? Don't I need a check to hand them before I can take deed to the house and then close with the buyers? How do I give them money that I don't have yet?
Thanks,
Mitchell
If not spelled out then should be assumed each pay thier own closing cost.
You need a attorney or title co. that will do a double closing. They close both same day . Take tenants buy money and pays sellers. Just ask for a double closing should be no problem.
That's what I've learned from Legrand's course... I think you have to find a title company to do a double closing. Which Legrand says should not be a problem, but not all title companies will do it. One point that I've also heard is to tell the title co that you do not need insurance b/c you will only be the owner for 5 mins. So I guess you should make sure you don't get talked into that.
(I'm still learning)