Posted by Woody on July 26, 2010 at 20:23:34:
The sale price is $40K. The $4K is an option fee which also lowers the purchase price to $36K in your lease option.
The typical realtor contract the $4K is earnest money which is all or apart of the down payment.
With both, the buyer will need to come up with $36K at close as you know. But a lease purchase and a typical realtor contract are not the same thing.
safe act with regard to option to purchase - Posted by chris
Posted by chris on July 23, 2010 at 16:11:48:
My weekend as it looks now is to figure if there is a legal way to produce lease option agreements for a particular property without violating the law as I am not a licensed originator. At this time I am working with a property that is for sale and has a strong creditworthy borrower that is completing a divroce. The person is willing to put down 10% as an option fee and lease the residence. The buyer believes the transaction can be completed in 6 months (when she believes divorce will be finalized.) I however want to add a longer time frame of extending an additional 6 months for a small fee that would come off the price…if it is needed that she may exercise in 6 months.
All option consideration fee(s) will continue to come off the purchase price if we need to extend.
Any advice or recommendations you would be willing to give on this matter is greatly appreciated.
Re: safe act with regard to option to purchase - Posted by Woody
Posted by Woody on July 26, 2010 at 14:31:22:
Doesn’t sound to me like you are offering any financing. You are “leasing” and have sold them an option to buy. You sold them that option for $10K. You should state that if they want to exercise their option to buy, and move from a tenant to a buyer, they would need to find their own licensed mortgage broker to do the financing.
No lic required if O selling pro se - Posted by John Merchant
Posted by John Merchant on July 24, 2010 at 14:59:18:
As the owner, no license is required in any state I know of to sell your own RE, or enter into an option agreement w potential buyer.
But if you’re not yet familiar with the law in state where you’re working I’d talk to some local RE Brokers and think about hiring one to work through this deal with you. Those REBs are up on the law and have access to such legal forms and knowledge as to when to use what form.
Option law used to be more wide open than it is today and I know TX in particular has recently enacted some tough new law sayig that an option to buy can only go for short period of time…there, it’s either 6 or 12 months.
So you need to either become expert in your local RE conveyance law or hire somebody who is.
Re: safe act with regard to option to purchase - Posted by chris
Posted by chris on July 24, 2010 at 24:12:06:
Property is in PA. Sorry for all the typos in the post. I am tired.
Re: safe act with regard to option to purchase - Posted by chris
Posted by chris on July 26, 2010 at 14:57:52:
So if house is sold for 40k, 4k being put down should sale price be written up for 36k or
sale price is 40k, 4k put down and now 36k due within x months. My thought process is Deposit on house purchase on typical (realtor) sale is allowing a contract, closing or sale occurs when final funds are received.
Re: No lic required if O selling pro se - Posted by Woody
Posted by Woody on July 31, 2010 at 15:30:10:
Lease Options can go longer that a few months in Texas. The regulations change after 6 six months up to 3 years. And change again if longer than three years. Lease Options are doable in Texas but are treated as a contract for deed and the tenant/buyer has an equitable interest amoung other things.
Re: What state is RE?nt - Posted by chris
Posted by chris on July 24, 2010 at 09:13:19:
state house is in is PA - sorry for the typos.
Is OH different with this issue? We work there too.