 L/O lease vs T lease (by NE [PA]) May 26, 2018 11:31 AM
 L/O lease vs T lease (by Ken [NY]) May 26, 2018 11:52 AM
L/O lease vs T lease (by NC INVESTOR [NC]) May 26, 2018 12:53 PM
L/O lease vs T lease (by Lynda [TX]) May 26, 2018 8:15 PM
L/O lease vs T lease (by NC INVESTOR [NC]) May 26, 2018 8:44 PM
L/O lease vs T lease (by razorback_tim [AR]) May 27, 2018 4:00 AM
L/O lease vs T lease (by NC INVESTOR [NC]) May 28, 2018 2:58 PM
L/O lease vs T lease (by JB [OR]) May 28, 2018 3:13 PM
L/O lease vs T lease (by NE [PA]) Posted on: May 26, 2018 11:31 AM
Message:
For anybody who sells via lease option, does your lease vary as compared if you were to rent the property out normally or do you use the same lease?
If different, how and why?
--174.234.xxx.xx |
L/O lease vs T lease (by Ken [NY]) Posted on: May 26, 2018 11:52 AM
Message:
I don't do them anymore but when I did I used the same lease and an option as a second document,the idea being if I did an eviction the option agreement didn't come into the hearing --72.231.xxx.xxx |
L/O lease vs T lease (by NC INVESTOR [NC]) Posted on: May 26, 2018 12:53 PM
Message:
If you are doing a L/O the option is separate from the lease. In NC the lease is the predominant contract. If they breach the lease the option is null and void and the terms of what constitutes a breach is spelled out in the option contract. Also, there must be an option payment which is non-refundable. Depending upon your local laws that option fee may or may not be used towards the sale.
Every state and even some local counties/municipalities have very specific rules regarding L/O option contracts.
From a mortgage standpoint be aware that FHA, which is the predominant vehicle for anyone using an option, has some very specific requirements. two of the most important:
Rent credit: they will only consider RC's if the credit offered is above the FMR. So if the rent is $1,000 and you offer 25% as a rent credit the prevailing FMR for that property must be at least $750.FMR will be based on comparable homes (size, amenities, etc.) in that neighborhood.
Seller Concessions/contributions; whether you call them rent credits, seller concessions, down payment contributions, etc., all totalled they cannot exceed 6% of the contract sales price. --71.75.xx.xx |
L/O lease vs T lease (by Lynda [TX]) Posted on: May 26, 2018 8:15 PM
Message:
Yes, 2 dif documents. 1-your regular lease that controls their behavior while they are tenants in your property. The residency lease does not mention the Lease Option. 2- An Option to Buy document that states rules/contraints of the option. --108.87.xx.xxx |
L/O lease vs T lease (by NC INVESTOR [NC]) Posted on: May 26, 2018 8:44 PM
Message:
To Lynda's point, here we are required to show any attachments / addendum's on the main lease. This could well be specific to NC but you should check. --71.75.xx.xx |
L/O lease vs T lease (by razorback_tim [AR]) Posted on: May 27, 2018 4:00 AM
Message:
I use the same lease. --70.178.x.xx |
L/O lease vs T lease (by NC INVESTOR [NC]) Posted on: May 28, 2018 2:58 PM
Message:
I forgot to add that the portion of the rent that is earmarked as "rent credit" must be placed in an escrow account until a) the tenant exercises their option or b) the tenant fails to exercise their option at which point the funds in the escrow account belong to you.
Depending on local laws and the terms of the LO contract, the option fee may or may not be required to be held in an escrow account. --71.75.xx.xx |
L/O lease vs T lease (by JB [OR]) Posted on: May 28, 2018 3:13 PM
Message:
You definitely need it to be clear that all repairs are on them under the lease option. I think that is one of the biggest differences. --50.45.xxx.xxx |
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