Posted by Michael Morrongiello on October 09, 2001 at 22:13:15:
BMP:
You have the concept down. The lease ends when the option is terminated or excercised. If you wish, you can add further language in the lease opton document to clarify this…
To your success,
Michael Morrongiello
Exercising Option on a L/O - Posted by Brian M. Powers(MI)
Posted by Brian M. Powers(MI) on October 09, 2001 at 18:31:40:
This may sound dumb but what happens if:
I sign a seller to a 3-year L/O agreement(not 1 yr with the right to renew for 2 more, but a 3 year agreement) that gives me the right to buy at any point during the agreement.
I place a tenant/buyer in the property on a L/O and after living in the property a year, they excercise their option to buy(which means I have to excercise my right to buy).
Does the lease agreement with the seller end when I excercise my option to buy or does he have 3 years of rent payments coming no matter what?
I am using the L/O I got in Bronchick’s Alt. RE Financing.
I guess I am asking if their is specific language or does the fact that the agreement states I can excercise my option at any time implies that the lease ends when I excercise my option.
Thanks!
BMP
Re: Exercising Option on a L/O - Posted by Edd Lay
Posted by Edd Lay on October 10, 2001 at 23:07:06:
Brian,
When you exercise your option and pay off the underlying liens your lease agreement with the seller is terminated and so does any obligation for any further lease payments. I haven’t seen Bronchick’s L/O agreement so I can’t comment on it’s language. It should be in the language of your contract though. Read it and see.
See ya,
Edd