Posted by Brent_IL on October 28, 2000 at 21:29:41:
Not a lawyer. This is educational information. If the lease-option contract labeled certain events such as bankruptcy, death, et al, as a material default of the contract and specified performance or liquidated damages, the optionee would be out of the picture as soon as they filed. You could then file the deed as Sean suggested.
Re: What if seller goes BANKRUPT? - Posted by Ron Ohara
Posted by Ron Ohara on October 30, 2000 at 21:12:32:
Your question is quite good, but what you are asking is what legal rights you have should bankruptcy occur. Only a qualified attorney is best at answering your question and more.
There are a number of theories but one theory is that you should already have a grant deed filled out by the Seller held in escrow ready to be filed at the time the lease-option is executed.