Posted by John Merchant on April 15, 2008 at 08:10:33:
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Recording Option to Purchase - Posted by Todd
Posted by Todd on March 20, 2008 at 18:38:47:
I am negotiating with a seller to grant me a 60-day option to purchase their property. My question to the forum is do I record the option then assign it or don’t record it, assign it and then record it at closing. Please advise.
Memorializing an Option to Purchase - Posted by Rick, the Probate Guy
Posted by Rick, the Probate Guy on March 20, 2008 at 21:04:40:
Todd - I’ve seen options treated in several different ways.
Many years ago, we recorded a Memorandum of Option, in lieu of recording the actual Option Agreement containing terms which I wanted to keep private, referencing the subject property, expecting that title insurers would catch this during any subsequent attempts to sell or refinance by the Optionor (Seller).
I never had a problem with this, however I have heard that some loosie-goosie title officers are willing to pass on (ignore) these documents.
My friend John Schaub records the actual Option, making the price, terms, etc. very transparent, and it is unlikely that a title officer would pass on this form of recorded document.
My choice is to have the Optionor sign a Performance Trust Deed (or Mortgage, if used in your State) in addition to the recorded Memo, and unrecorded Option Agreement. If the Optionor (seller) forgets that we have a deal, I can foreclose on the Performance TD if the Seller is uncooperative should I choose to excercise my option.
I’ve never foreclosed on a P-TD but I have excercise my options several time with uncooperative Optionors and ulmately got my properties.
There are some good courses on this and I think that the money spent on this training can be an exceptional value.
Hope your deal goes well.
Re: Memorializing an Option to Purchase - Posted by Todd
Posted by Todd on March 21, 2008 at 15:09:47:
Does anyone know where I can get a good straight option form?