Posted by I.R. on May 09, 2003 at 08:40:00:
There are probably a thousand posts on here about Lease/Option deals, and you just need to settle in and start reading and learning. Obviously you’re trying to go it alone, with no expert help such as lawyer or realtor, and you might muddle through it that way. Slow, painful, but probably can be done.
You’ll probably only pay two or three times what the L or RE Agent would charge you, but, hey, it’s great experience! Enjoy.
Holding a morgage - Posted by Kim
Posted by Kim on May 09, 2003 at 06:00:26:
Hi! I am interested in rent/leasing a home that the owners previously wanted to sell. They are interested in holding the morgage for us for a year until we are in the position to buy. Can you explain what this is and what are our legal obligations to buy next year?
Re: Holding a morgage - Posted by Bill H
Posted by Bill H on May 09, 2003 at 11:45:44:
Kim:
Without more details it is difficult to say just what is happening. Mortgage? It sounds to me like they are trying to lease/option the property to you.
If this is the case what this means is that you will be under the lease for say a year with the option to purchase the property at the end of the lease.
If you exercise the option to purchase then you go through with the purchase and you become the owner of the property.
If you chose not to exercise the option at the end of its term. You walk away and lose whatever money you put up as option money. They keep the property and you move out.
As I said initially without more details I cannot say that you have any other legal obligations as a result of failing to excercise the option to purchase.
------>bill