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Remember how Marilyn mentored you through the equity share? She
made something bordering on complex almost simple. Well, Marilyn
has done it again with the lease option. Our Lease Option Coach
walks you through every step of the transaction while the Lease
Option Agreement and the Additional Documents form its legal framework.
The standard transaction is described below, but the forms can be
customized to suit your needs.
The transaction begins with a buyer and seller willing to engage
in a lease option transaction. When they decide to go ahead, they
sign the Lease Option Agreement, an 11-page document consisting
of an Option Agreement, a Lease and a Purchase Agreement which we can either prepare for you or you can use the form we use. The home's
purchase price is specified in the agreement, or it is set by appraisal
later when the purchase option is exercised. It is up to you. The
option term too can fit your needs. Do you want to the purchase
option to begin immediately and end one or two years later, or would
you prefer that the option not be exercised until a date in the
future? Our forms allow you to choose the method right for you as the financial picture of our economy changes.
When the Agreement is signed, the Prospective Buyer puts up a refundable
deposit and begins a 20 day contingency period to investigate the
property. If the Buyer decides against the lease option, the deposit
is returned and the agreement becomes void. If the Buyer decides
to go ahead, the rest of the option deposit is paid, and all option
deposits become non-refundable, to be credited to the purchase price
if the purchase option is exercised. The lease now commences.
During the option term, the Prospective Buyer may exercise the
purchase option or not. If exercised, the pre-signed Purchase Agreement
takes effect. If the purchase price is to be determined by appraisal now or later,
the appraisal is performed at that time. The agreement specifies the method
for performance of the appraisal. The loan is the only contingency
to the purchase. If the Prospective Buyer is not able to obtain
the loan or does not agree with the Seller financing,if offered,
he may cancel the agreement and forfeit all deposits because they
are non-refundable. Other than the loan contingency, the Prospective
Buyer is committed to purchasing the property once the Purchase
Option is exercised. If the Option is not exercised, all option
deposits are retained by the Owner as consideration for extending
the option, the Lease Option Agreement becomes void and the lease
terminates. If you find this is the answer for you, go to our Fees Page if you want us to facilitate the transaction for you or our Do It Yourself Page if you want to do it yourself using our forms.
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