Sub-let A Lease Option? Try Figuring Out This Question! Whew!
If I (the t/b) agree and sign an assignable contract to l/o the sellers house but then turn around and l/o the hose to someone else. Who is liable if the new t/b damages the home or defaults on the deal. Or is the ( t/B ( the 1st one free from on contractual liability because the 1st t/b assigned the contarct to someone else?
Does the original owner know or need to know that there is new tenant living there?
If the original seller was stupid enough to allow a sub-lease by contract, meaning that permission to sub-lease was given to the original T/B in the contract, then the original seller, I feel can go after the original and/or the secondary T/B. If however no actual permission was given to reassign or sub-lease, contractually, then the original T/B is responsible.
“Does the original owner know or need to know that there is new tenant living there?”
Yes, in a L/O situation the owner needs to know who is living in their house or they are fools. This is still their house, it is still owned by them and they should still have a say so as to who is living in there.
Of course if they sold it, and transferred the deed to a new buyer, then this would be a completely different situation.
Best of luck
John (LV)
Is this not the same thing as the " sandwich l/o? If not, how does that work?
~Chantelle
Sandwich lease option
- you l/o from original seller (you become the original t/b of that property)
- you then l/o to a another t/b
So yes, in a sandwich lease option, you are the middleman matching a motivated seller with a prospective buyer.