How long is a term for a lease option ; can you suggest a lawyer

[Lori Agajanian]

How long would you make the lease on the lease option?  

[Dominic Bouchard]

@Lori Agajanian the average term of the option agreement is negociable, but normally is from one to three years. Other consideration needs to be taken care of such as: is the option apply toward the down payment? Normally no. Let us know for additional info. Cheers

[Brian Gibbons]

Hi @Lori Agajanian

12 month lease, 12 month option, right to extend after 12 mo,

3% option fee if you are owner, 

option fee does not apply to purchase price or down payment, 

use collection service like

http://notecollection.com/faq

Get tenant to mortgage coach, I use

http://upgrademycredit.com/categories/

[Lori Agajanian]

Thank you Brian, I was told the option fee and part of the monthly rent goes to the down payment and the end of the term if the leasee decides to buy?

Lori

[Lori Agajanian]

3% of purchase price of home?

[Brent Coombs]

@Brian Gibbons, wow! Talk about having your cake - and eating it too!

Like Lori, I was under the impression that although the option fee is always non-refundable, it DID become part of the deposit if/when the buy option was taken up.

Or are you just positing that everyone selling this way SHOULD try to have their cake, and eat it?

It's a bit sad that the banking system is so war-like, that lease options would ever tempt "buyers"!

[Brian Gibbons]

Originally posted by @Lori Agajanian:

Thank you Brian, I was told the option fee and part of the monthly rent goes to the down payment and the end of the term if the leasee decides to buy?

Lori

  This is the way I do it, 

I enter into a lease and a separate option and a letter of intent with the seller with the intention of selling my interest in the  contract.

 Then the tenant buyer for 3% of the purchase price places a check into escrow, check paid to escrow co

I have a new separate agreement that both the seller and the new tenant buyer sign that allows me to collect 3% for an option release fee, an option release agreement.

A new lease and the new option is created for the seller and the new tenant buyer.  I collect my 3% fee and the seller and the buyer new agreements.

[Jeff B.]

Suggest you examine Issues with RTO

[Kyle Mccaw]

For anyone reading this in Texas. It is my understanding Texas lease options generally are illegal now. There a very few loopholes. But from everything I have learned the loopholes are too restrictive to justify. So please reach out to a Texas attorney if you are in Texas.

[Greg H.]

Originally posted by @Kyle Mccaw:

For anyone reading this in Texas. It is my understanding Texas lease options generally are illegal now. There a very few loopholes. But from everything I have learned the loopholes are too restrictive to justify. So please reach out to a Texas attorney if you are in Texas.

 Lease-options of less than 180 days are perfectly fine in Texas.  Lease options of greater than 180 days have so many restrictions that they are not worth the effort

[Lori Agajanian]

Appreciate your advice everyone!