L/O question - Posted by Kristen

Posted by Kristen on July 09, 2002 at 06:36:41:

So could I get like a $5000 option consideration or is that too much? And also for whatever reason if they decide not to option that money is then mine at the end of the term? I would like to put whatever option money back into the home and then refinance at a lower rate.

L/O question - Posted by Kristen

Posted by Kristen on July 08, 2002 at 19:55:10:

In a L/O do you also get a security deposit and does that apply to the final purchase of the house? I have a doublewide mobile home land home package. It has brick foundation, fenced yard, and alot was done on the inside. It appraised 2 years ago at $76000 and I owe $62000. It sits on a 3/4 acre corner lot. I would like to L/O if I sell it I sell it kind of thing. Also at the end of 1 year do they lose all the security and rent credits if they do not buy it? I’m just starting out obviously so any help would be great. Thanks

Re: L/O question - Posted by Brian M. Powers(MI)

Posted by Brian M. Powers(MI) on July 08, 2002 at 21:56:57:

it is up to you wether or not you get a security deposit from the buyer in a L/O, in addition to the non-refundable option consideration.
i take a small portion, usually $500 of the total amount they give me and apply that as security deposit on the lease. i don’t ever want to get in front of a judge and have him/her misconstrue my non-refundable option fee as a way to keep the tenants money and dance around security deposit laws.
as far as what happens with the security depost at closing, so far as the tenant doesn’t owe you any money for any terms/conditions of the lease than it is rightfully theirs. you could write them a check or have the closing agent credit the seller the amount of the security deposit at closing.