Lease Option Contract
Does anyone have a good lease option contract I can use? Also, when I tenant signs a l/o contract who is normally responsible for maintanance and repairs? If a major repair is needed after you sign the l/o contract and the purchase price is set, who is responsible?
Thanks
I paid a attorney to write one up for me. It is very comprehensive yet straightforward . He charged me like $200. I suggest you pay a attorney for one also.
Good advice, and you can also get forms from your local Office Max or Office Depot. They will give you some ideas to start with and then you can get a lawyer to draw up the final document. You will put in who is responsible for what and the lawyer will tell you if you ar within your rights or not. Good luck!
I have a lease option agreement that has the lease and the option in one contract. I was told by an attorney to make sure that the lease agreement and the option are SEPARATE. He said judges understand leases but if you mix the two, one could argue that the person is buying the home, instead of renting (eventhough the option hasn't been exercised), therefore you could not evict but would have to foreclose. Any thoughts on this would be great.
Thanks !
Jason
I have one that my atty drew up. Its pretty straight forward. It's a 12 month lease with the option to purchase at the end. It states clearly that if the tenant does not exercise the option then the downpayment and extra fees are forfeited. It also states that "tenant and landlord will enter into a definitive purchase agreement no later than 30 days before the end of the lease". This gets you past the confusion.
jhadd,
Glad to meet you.
What do you do when your renter shows the Judge the Option, which chances are they will. The option could be taken as the renters have a "Equitable Title" Issue."
Anytime you have to keep something in your back pocket so it is hidden, then this is a decision you must make about your own credibility as an investor.
Just my thoughts,
John $Cash$ Locke
$Cash$...
What would be the correct thing to do in a situation...seperate or all-in-one form?
Thanks in advance
$cash$,
I don't think the attorney was advocating "hiding" anything. He was just stating that keeping the 2 separate may be better. For example: The tenants fail to pay on time and in the lease, the eviction starts on the 13th. Since the lease agreement has been breached, the option is null and void. If it goes to court, the only thing the judge will care about is the lease agreement because at the top of the option, it clearly states that "any breach of the lease agreement terminates this option agreement". If they are mingled together, it may be harder to distinguish between the 2. Maybe that was what he was referring to.
Thanks for your input !
Jason
Quote:
On 2003-12-17 11:45, JohnLocke wrote:
jhadd,
Glad to meet you.
What do you do when your renter shows the Judge the Option, which chances are they will. The option could be taken as the renters have a "Equitable Title" Issue."
Anytime you have to keep something in your back pocket so it is hidden, then this is a decision you must make about your own credibility as an investor.
Just my thoughts,
John $Cash$ Locke
John can you be more pacific, Had a hard time understanding what you just stated.
Ok, I have got a question. What if you currently have tenants on a straight rental lease and they are now interested in doing a lease purchase. What would be the best way to handle this?
Jar,
Create an ENTIRELY NEW agreement. That way you severe the standing rental agreement completely.
Must be a Jacksonville Fl thing, I was also told to keep lease and option contracts separate. Could it be the way a certain judge in this market is interpreting the law. We must be getting this recomendation for a reason.[ Edited by wpruett on Date 12/18/2003 ]
My personal preference is to keep the lease and the option seperate. This way if they choose not to exercise and want to keep renting then you renew the lease, not the option. However, all monies toward the option are non-refundable. They don't have to move, and I still have someone in my house. If they cannot get financing, or wish to extend the option I am very willing to do so, only on the terms that there will be new option money. There's all kinds of things about rent credit and the like that come into play as well. But for the purpose of answering your query, keep them seperate.....less headache, confusion, and time in court if things hit the fan. Besides, in my opinion, tenants are less scared by that lease (since they've signed so many in the past) and it makes that option contract easier to understand and way less intimidating.
I suggest -as this is what we do- using two contracts. 1 for the L/O, and 2. one for the lease on the property as you'd get from any tenant.
That info. is directly out of Carlton Sheet's course.
Thanks,
OnTheWater