Lease Option/Right To Assign Clause ? - Posted by Tonya

Posted by Bill Jacobsen on October 21, 2006 at 12:06:27:

If I am selling on a lease option contract, I will make it non-assignable. If I am selling outright I do not include it unless I am taking back paper.

Bill

Lease Option/Right To Assign Clause ? - Posted by Tonya

Posted by Tonya on October 21, 2006 at 04:51:37:

Is it ture that most sellers include a “non-assignable” clause in the lease-option contract? I am guessing most investors would include a “non-assignable” clause but FSBO would not mind? Am I on the right track here? Any comments would be greatly appreciated. Thanks in advance.

Tonya
Milwaukee, WI

Re: Lease Option/Right To Assign Clause ? - Posted by Don (VA)

Posted by Don (VA) on October 22, 2006 at 16:19:25:

A few other points: Most real estate agent contracts contain a non-assignability clause, intended to protect the seller. But that’s always negotiable. The greater the seller’s motivation, the more likely you’ll be to strike that clause or to substitute an assignability clause. Pretty much the same for FSBOs…the more motivated they are, the less they’ll object to a contract that’s silent on assignability (as one of the other posters here noted, it’s assignable unless prohibited) or to inclusion of a clause specifically stating that it’s assignable.

So–when you’re lease-optioning a property from a seller, you want it assignable, and if their motivation is moderate or higher, that’s not a problem. When you’re lease-optioning a property to a tenant-buyer, you do not want it assignable.

one more point - Posted by Marc Donovan

Posted by Marc Donovan on October 22, 2006 at 07:19:19:

A contract is assignable unless it says otherwise - as long as the assignee is able perform all of the covenants. This applies to lease options. An example of one that would not be automatically assignable is a sports contract between a team and a professional athelete.

Re: Lease Option/Right To Assign Clause ? - Posted by Bill Jacobsen

Posted by Bill Jacobsen on October 21, 2006 at 12:10:28:

When I sell using a lease-option contact, I will include a non-assignable clause. If I am doing an outright sell, I will not unless I am taking back paper.

Bill