Is it OK to accept down payment on a house that I didnt close yet

2 Replies

I am buying a house with all cash, which is supposed to close soon, title search is being done now. Im trying to sell it for a lease option. Is it OK to accept the down payment from the end buyer if they like the house and want to buy it?

I found another great deal for which Im short of money. If I accept the down payment, I should be able to buy the other deal too. Im nervous that someone else might pick it if I delay. The end buyer really liked the house but i havent closed it yet. 

What is the best way to deal with the situation and protect myself without getting into trouble? Any feedback is really appreciated.

I think if you are up-front about it with your lease option tenants it's okay to take the down pmt. But I think you may be going down a slippery slope when it comes to spending the down pmt. You have to think; where will you get the money to replace their down pmt. if the 1st deal falls through? Do you have someone you are SURE can, and will, lend you that money to ay back you lease option tenants?

@Kumar Chin

Have you buyer on lease option write a check (write in memo "refundable" to title co, not you.

DO NOT SPEND THEIR MONEY.

You clearly need Private Lender funds.

Google "Brian Gibbons Private Lending"