Option money plus deposit or in place of? - Posted by Mike IL

import · May 16, 2005, 8:07am

Posted by Ryan on May 17, 2005 at 09:09:07:

That’s the easy part. A newspaper ad generates a lot of response, typically, for a rent to own property.

import · May 16, 2005, 8:07am

Posted by Mike IL on May 16, 2005 at 08:07:51:

I am structuring my first lease option and am curious about what the ‘industry standard’ is if there is one. Do most of you collect the option money in place of the security deposit or in addition to it? Secondly, do you need to place the option money in to an interest bearing account? This is for a property in Florida.

Thanks,

Mike

import · May 17, 2005, 7:42am

Re: Option money plus deposit or in place of? - Posted by Ryan

Posted by Ryan on May 17, 2005 at 07:42:29:

I would collect it in addition to. Generally I set up an option contract and a seperate rental agreement. Option money is not refundable so you can do with it what you want, it’s yours. It just gets credited towards the purchase price if they choose to exercise the option.

import · May 17, 2005, 7:56am

Re: Option money plus deposit or in place of? - Posted by Mike IL

Posted by Mike IL on May 17, 2005 at 07:56:04:

Thanks for your response Ryan. Now lets hope I can find people that have money for the deposit and the option money!!!