Posted by Brad (sd) on January 11, 2003 at 12:53:52:
Hello Kristine,
So what you mean is that the investor wants the terms of the final purchase contract to be included in the option, right? The end owner of the option wants the right to buy, and wants to know on what terms he/she has the right to buy. Is this what you are talking about when you say, “They want more than the “option” or “right” to buy.”?
Have a good one
-Brad
Purchase Options… do you sign a… - Posted by eliteprops
Posted by eliteprops on January 10, 2003 at 12:58:53:
Hello
I got a question which I believe will be a bit silly but here goes.
when doing a purchase option with a owner do I have have fill out my purchase option as well as a purchase and sale contract as well.
I would think so especially that I intend to sell the option to a retail buyer or possible other invester…
Am I right …? and if so when I sell my option do I write up another option as well as purchase and sale agreement or just have my buyer sign a assignment of purchase with a new purchase and sale contract or just have my orignal option assigned over to the buyer. I would think so much easier.
would love to hear from the experience investors whom have done options before.
thank you
Best Regards,
Manny Cortes
Re: Hello elite - Posted by Ed Copp
Posted by Ed Copp on January 10, 2003 at 15:26:09:
the first thing that you need is a some definitions. The question that you ask is something like asking can I keep writing checks because I am not out of checks yet?
An option and a purchase contract are not the same. When you own an option you can sell it. The proper way to deliver it to the buyer (of the option) is with an assignment, or a bill of sale. You are selling the option here not the property. As a matter of fact the option is not real estate at all, it is personal property. The buyer of your option may or may not buy the property, it is up to him. You got paid for your position (the option only), and that is the end of selling the option. Purchase and sale agreement is not involved at this point.
If you get a seller to sign an option and a purchase contract then he could well be obligated to deliver deed to two different people (the one who has the contract to purchase, and the one who has the option). You as a smooth operator could sell your position in both contracts without the seller knowing. This might just be a problem.
Re: Purchase Options… do you sign a… - Posted by Tracy
Posted by Tracy on January 10, 2003 at 13:23:56:
Hi Manny,
What I do is use a single option to purchase agreement which turns into a purchase agreement once the option is exercised. I use an assignment of option agreement to assign–sell-- my options to third parties. I have all title transfer documemts signed by the optionor/seller and notarized, and held in escrow by my title company. This way, the optionor can’t renege on our legally binding option agreement. If you’re interested in using real estate options to control properties, I recommend that you do as I did, and read Thomas Lucier’s excellent book, How To Use Real Estate Options To Control Undervalued Property, that’s available at amazon.com. I hope this helps and good luck.
Re: Hello elite - Posted by Kristine-CA
Posted by Kristine-CA on January 11, 2003 at 08:10:33:
Ed: my option form includes the purchase contract as an addendum. Seller signs option agreement. If I assign option, obligations of option and of purchase contract become those of the assignee. Obligations for the sellers remain the same. Not having the terms of sale (such as those outlined in a purchase contract) would seem, to me, to be a very limited document. Especially for flipping/assigning to other investors. They want more than the “option” or “right” to buy.
Sincerely, Kristine