Need Help With An Option

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A couple of questions related to doing straight options (not Lease Option)

I have a house that I can option and try to make a spread.

Purchase Price $250,000
Target Sale $300,000+

1)
I execute Option Contract with Seller. Then I sign a Sale and Purchase Agreement with a buyer also?

Do I then assign the Sale Agreement to my original seller and he closes instead of me?

2)
If this is right then I wont show up on Title. THIS PROBLEM WOULD EXIST IN EVERY ASSIGNMENT. What happens when title is checked prior to closing and they realize you dont have title?

Comments(2)

  • mrlpexpert18th January, 2004

    Why not just sign a pure option or( straight option) contract with the seller with the right to assign and simply assign this contract to the buyer and be done with it. Your fee will be the assignment fee.
    Cruz

  • Neill718th January, 2004

    thanks Cruz,

    that is what I wanted to know, because I have an Assignment of Option form, I am just a little uncertain.

    Does an Option Agreement have embedded in it all the other info that is in a Purchase and Sale Agreement?

    That is why I thought I needed two separate procedures before assignment.

    Can you comment on that?

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