Lease-to-Own in Ohio (Lease Option)
I have been doing lease-to-own contracts for a few years for a few houses. I now have 3 out on lease-to-own contracts. I had another, but they recently bought the house after only 1 year. So far, they have worked great for me. I have tried to make sure I get people who can actually perform. Of the 3 I now have, I really do believe that all will eventually buy the house. I know there are scammers out that that do it with people who have no ability to buy with the intent to do a "rinse and repeat" operation. I have only collected 3% or 4% in option consideration (the down payment).
However, I have had some warn me that they can be trouble. I know in Texas they are illegal, but where I do them in Ohio, they are fine. It is something about the recent Dodd-Frank legislation. I have a lawyer that see no issues, but also is not that knowledgeable in this area.
Can anyone on BP that knows the pit-falls of Lease-to-Own for the seller share with me what these are?