Post-dating an L/O Contract - Posted by Rob

Real Estate Investing
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Posted by Jim FL on November 07, 2002 at 17:41:33:

Rob,
When I sign up a lease option, I use the single inclusive lease with option to purchase agreement, along with a performance mortgage.

Just sign the agreement now, make the date of possession as 1/1 and your payments beginning when ever you negotiate for them to begin.
If the agreement you have does not have a place for it, and I cannot imagine it would not, Bill writes good stuff, just make an addendum spelling that out in plain english and have each party sign it and date it.

When are you going to sign these people up?

Good luck,
Jim FL

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Post-dating an L/O Contract - Posted by Rob

Posted by Rob on November 07, 2002 at 12:00:00:

If I post-date an L/O contract to begin on January 1st and the seller calls me in December and says, “Sorry, we found someone to buy our home outright”, do I have any recourse?

Thanks…a newbie

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Re: Post-dating an L/O Contract - Posted by Mike

Posted by Mike on November 07, 2002 at 12:08:32:

Did you get a deposit? If you did you might have a good reason to keep it. But you might have difficulty getting their L.O. Contract enforced if they never moved in. So I would say your deposit is probably your best and only recourse.

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The L/O was with a seller… - Posted by Rob

Posted by Rob on November 07, 2002 at 12:19:02:

The contract would be set to begin on 1/1…
I would be looking for a tenant-buyer for their house…

but what would happen if the seller called and said, “Sorry…we want to cancel since we sold our home on our own without you”

Would I have any recourse?

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Re: The L/O was with a seller… - Posted by Scott

Posted by Scott on November 07, 2002 at 12:26:00:

If the contract is post dated why should the sellers wait to see if your going to buy it. Do they have any recourse against you? If I was post dating a l/o I would not expect anything to take effect until the time the contract takes effect and either party should be able to cancel in between.

Why is it post dated for you to find a buyer? If so instead of post dating contract make your first payment say due in 30 days 60 days or something like that.

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Re: The L/O was with a seller… - Posted by Mike

Posted by Mike on November 07, 2002 at 12:23:00:

That is a completely different issue entirely. If the Lease Option is done right you put a memorandum of option on the property at the county recorders office and leave it at that. If they try to sell the property the title company won’t clear the title and you will have a very good hook into that contract !!!

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Re: The L/O was with a seller… - Posted by Rob

Posted by Rob on November 07, 2002 at 12:28:21:

well, they want to move to their new home over the XMAS vacation…
If I sign it up, though, to start 1/1, can I legally record a memorandum of Option BEFORE 1/1 ???

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Re: The L/O was with a seller… - Posted by Rob

Posted by Rob on November 07, 2002 at 12:28:40:

If I sign it up, though, to start 1/1, can I legally record a memorandum of Option BEFORE 1/1 ???

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I think I see the confusion - Posted by Jim FL

Posted by Jim FL on November 07, 2002 at 14:03:31:

Rob,
Your question:
“If I sign it up, though, to start 1/1, can I legally record a memorandum of Option BEFORE 1/1 ?”

The part with the asterik around it is what confuses me.
Are you saying that the lease option agreement is signed, in December, with the signatures having dates on them for January 1st?
or
What about the date of possession, or date your payments begin?

What form are you using?
See, in my lease option agreement form that I use with sellers, when I do them, has a date the agreement is signed, and it is legally binding after that date.
It then has a date of possession, a date payments are to start, and any other stipulations in the agreement.
Once the original agreement is signed, my sellers cannot just back out.
I don’t use a memorandum of option, or affidavit of agreement.
I use a performance mortgage, giving me better control.
Now should a seller want to back out before I place a T/B’er, I’ll see why, determine what I have into the deal at that point, and weigh my options.
Sometimes I’ll let them out, because a lengthy court battle would not be worth my time.
There are other deals to get.
Of course if I have money into the deal, the sellers need to reimburse me to get a release.

So rather than sign an agreement now with sellers to not start until 1/1, because this is post dating, and not a good idea.
Sign the agreement now, make it effective now, and take possession on 1/1, with payments starting for as far off as you can negotiate.

I hope I understood what you were seeking here.
HTH,
Jim FL

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Re: The L/O was with a seller… - Posted by Mike

Posted by Mike on November 07, 2002 at 12:39:18:

Yes you have the right to record it as soon as the contract is signed. expecially after a day or two have passed for a right of recision.

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Re: I think I see the confusion - Posted by Rob

Posted by Rob on November 07, 2002 at 14:12:33:

Jim, I’m using Bronchick’s L/O form.
They want to move out over the XMAS vacation, so they would be occupying the house until that time, with me taking over 1/1, which would give me ample time to find a TB, however, I don’t want them turning around and backing out with a start date of 1/1

P.S…Do you use any other forms i.e. Power of Attorney?

Thanks