Question on Lease/Option to Buy Agreement

[Warren Blevins]

Hi BP Community.

I am selling a house in central Florida and was contacted by an investor with the following Lease/Option agreement. This guy apparently finds potential tenants/buyers that want to live in a house for 3 years and then buy at a set price. The “agreement” he sent me is below (identifying details redacted):

______________________

RESIDENTIAL LEASE and OPTION TO PURCHASE AGREEMENT

BUYER/TENANT: XXX Holdings, LLC

Date: 2-16-2018

SELLER/LANDLORD: XXX

PROPERTY ADDRESS: XXXXXX

RESIDENTIAL LEASE

1) Rent: $2,500 per month

2) Lease Term: 36 months, beginning March 16, 2018 and ending March 16, 2021.

3) Maintenance: Buyer/Tenant will be responsible for maintenance and repairs of

the property, not to exceed $500 per incident.

4) Sub-Lease: Buyer/Tenant has the right to sub-lease this property with written

consent by the Seller / Landlord, and this shall not be unreasonably withheld.

OPTION to PURCHASE

1) Purchase Price: $ 345,000

2) Option Period: 36 months, beginning March 16, 2018 and ending March 16,

2021.

3) Option Consideration: $100 - All Option Consideration will be credited in full

toward the purchase of the property.

4) Rent Credit: Buyer/Tenant will be credited $ 0 per month toward the purchase.

5) Closing Costs: Purchaser will pay all allowable closing costs.

6) Expiration: This offer shall expire on March 16, 2021.

7) Inspection: This offer is contingent upon physical inspection of property and

subsequent completion of a more formal and signed Residential Lease with Option

to Purchase Agreement.

8) Non-Exclusive – This agreement is non-exclusive and can be canceled anytime

by either party.

9) Assignable – This Agreement is assignable with written consent by the Seller /

Landlord, and this shall not be unreasonably withheld.

X_____________________________ X ________________________________

Seller/Landlord Date Buyer/Tenant Date

_________________

I have a few questions:

1. Is this legit?
2. Should I hire an attorney to make sure our agreement is solid?
3. Does the state of Florida have boilerplate agreements for this sort of arrangement, like they do for purchase agreements and rental agreements?
4. The current market rent and price is in the agreement above… Does one typically go higher or lower than the market rent/price on these sorts of agreements?
5. What questions should I be asking this investor when I call him back?
6. What provisions should I ensure are included in the lease/purchase option agreement?

Thanks!

[John Thedford]

If you want the house SOLD forget this "investor". Look for a legitimate cash buyer. Also, it sounds as though the agreement might be illegal and their intent is to broker the house. If not licensed, they are probably violating FL state laws. They want to put up $100? That is probably their life savings.