Posted by Doug Worden on July 02, 2001 at 11:02:41:
Anne,
Thank you for your reply.
I’ve already arranged to meet with my attorney and I ordered Bronchik’s course today.
DW
Lease Option Questions…for the Pros - Posted by Doug Worden
Posted by Doug Worden on June 30, 2001 at 20:18:09:
I’m close to starting L/O’s. Sitiing down with my attorney to review documents in the next week. But I need some clarification first.
- Do I need a performance mortgage in addition to a solid Lease Option Contract and a Memorandum of Option?
2)What’s the best way to protect oneself with payments going to the seller? Should I make all payments personally for the seller directly to his/her lender? Should I use an attorney or title company to handle all payments, both from the buyer to me and from me to the sellers lender?
- One course I read recommended signing both an option agreement to purchase and a separate residential lease agreement vs. a Lease/Option Agreement. Does this provide any advantage?
Thanks again for all the great advice so far…
Doug W
Re: Lease Option Questions…for the Pros - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on July 01, 2001 at 21:08:08:
The performance mortgage, and the memorandum of option are esentually the same thing. Thier function is to cloud the title by letting the would know (by recording) that you have an option on the property. The terms of the option need not be disclosed in the memorandum.
I like a seperate lease and option rather than to combine them. The option is sellable by itself, and it may not be the desire of the purchaser of the option to assume the lease.
Re: Lease Option Questions…for the Pros - Posted by Dee-Texas
Posted by Dee-Texas on July 01, 2001 at 08:23:07:
I make all payments to the bank with their coupon book. I get their password and all information so that I can check it at anytime. The performance is recorded so that THEY (the seller) won’t borrow against the property that you are now selling to a T/B’er.
I would use Bronchicks forms and have my attorney look them over for your state. The best out there in my opinion.
Great Success,
Dee-Texas
Re: Lease Option Questions…for the Pros - Posted by Tom
Posted by Tom on July 01, 2001 at 24:54:50:
One way to protect yourself with payments made to the seller is to make the check payable to the sell AND to his bank.
Re: Lease Option Questions…for the Pros - Posted by Doug Worden
Posted by Doug Worden on July 02, 2001 at 06:25:46:
Ed,
Thanks for your response as well as the others.
I have several samples of Memorandum of Option from some of the courses I bought as well as from Bronchiks web site. However, I did not buy the Bronchik course yet,and I don’t have any paperwork that is a performance mortgage. Is this just a term used in place of the Memorandum? Do I need additional paperwork?
Sorry to get so picky but after reading the post about the seller trying to sue I want to have my tail covered.
Thanks
Doug
then get Bronchick- - Posted by Anne_ND
Posted by Anne_ND on July 02, 2001 at 08:36:22:
-if you want your tail covered. Have a local RE
attorney look over the forms. The paperwork you use
will be critical to your success. Why use something
less than the best if your financial well-being
depends on it?
Also, a performance mortgage and a memorandum of
option ARE NOT the same thing, although they may
accomplish similar goals.
Anne