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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Beware of lawyers urging you to help others break the law. Posted by Ward-CA- on June 19, 2002 at 7:01 AM In Reply to: Real Estate Lawyer offers Lease Option posted by Kimberly on June 18, 2002 at 10:45 PM : Ward, I recently missed a the opportunity to buy a home priced at $250K. The Broker/Real estate attorney called and offered me a Lease Option to buy the home from the new owner at $285K. (With some fixing the home is worth $315) : He wants $50K to purchase the lease option and 3months of mortgage payments at $1500 before I can execute my option to buy at $235K. I pay closing costs. I do get posession for the 3 months. Broker/Attorney says to keep quiet about the $50K option price so seller doesn't pay capital gains. What should I look for in the option to protect me? Thanks PS Happy belated fathers day.. =•=•=•=•=•=•=•=•=•=•= Kimberly, I am opposed to lease option devices because they are so rarely exercised by the optionee. But if you are bound and determined to get involved with one anyway, then I would urge you to either record the lease option or record a Memorandum of Lease Option. Recording the document or a memorandum of it puts the world on notice that you have a pending interest in the property that they should take note of if they’re contemplating doing something that would affect the title of the property. My real preference, in lieu of a lease option agreement, is the use of a holding escrow that only awaits your performance in order to close and transfer title to you. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, I recently missed a the opportunity to buy a home priced at $250K. The Broker/Real estate attorney called and offered me a Lease Option to buy the home from the new owner at $285K. (With some fixing the home is worth $315) : : He wants $50K to purchase the lease option and 3months of mortgage payments at $1500 before I can execute my option to buy at $235K. I pay closing costs. I do get posession for the 3 months. Broker/Attorney says to keep quiet about the $50K option price so seller doesn't pay capital gains. What should I look for in the option to protect me? Thanks PS Happy belated fathers day.. : =•=•=•=•=•=•=•=•=•=•= : Kimberly, : I am opposed to lease option devices because they are so rarely exercised by the optionee. : But if you are bound and determined to get involved with one anyway, then I would urge you to either record the lease option or record a Memorandum of Lease Option. Recording the document or a memorandum of it puts the world on notice that you have a pending interest in the property that they should take note of if they’re contemplating doing something that would affect the title of the property. : My real preference, in lieu of a lease option agreement, is the use of a holding escrow that only awaits your performance in order to close and transfer title to you. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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