rent to own - Posted by Judy

Real Estate Investing
1

Posted by Soraya on May 10, 2000 at 11:24:48:

1-Buy Wm Bronchick’s course on lease options. He has several disclosure letters that you have the optionee (tenant buyer) sign up front. They will keep you out of court.

2- In your option agreement do not mention rent credit.

Instead you may want to have your agreement read as follows:

Provided the OPTIONEE/TENANT is in possession of the property described above under a valid lease agreement at the time of exercise of this OPTION, $____________ of each monthly rent payment received on or before the 1st of the month under said lease will be applied as additional option consideration to reduce the purchase price if, and only if, tenant exercises this option to purchase.

Also have a paragraph that states:
It is understood that the option consideration does not constitute any equity in the Optionor/Landlord?s property. Optionee/Tenant can acquire equity only upon exercise of the option.

Soraya

2

rent to own - Posted by Judy

Posted by Judy on May 10, 2000 at 09:05:23:

It seems like at the end of some lease/options when the tenant cant qualify they want their non-refundable deposit back even though they are aware in the beginning they dont get it back if they cant exercise the option. Ive read some even try for equitable interest in court. What would be the down fall of instead of using a lease and the option forms of using a lease along with a purchase contract with no contingencies and the earnest money -( rather than option deposit)being liquidating damages for non performance if they dont go through with the contract in the time allowed such as 12 months. I suppose one down fall is you couldnt offer a monthly rent credit. Any
opinions would be appreciated.
Judy