Purchasing a property that has a lease option

[Brian Midden]

I spoke with a seller today and they are pretty motivated to sell their rental they have. The home currently has a tenant in it and the tenant is under a lease option.

If I abide by the terms of the lease, am I allowed to purchase the property from the seller? 

• (if the tenant decides they want to buy the property a couple months later and I abide by the terms and sell them the property)

Now here is where it gets a little sticky. The seller said the tenant has lived in the property for about 4-5 years and doesn't think they are ever going to purchase (i would say you're probably right miss seller). I asked when the lease term ended  and she said that they didn't think there was an end date. I didn't dive into great detail but to me it doesn't seem like the contract between tenant and seller is a legally binding one, but I am not sure. 

If i can purchase from the seller what are some things I need to be sure of in the purchase and sale agreement?

Any insight on this would be great

[Steve Vaughan]

I'd ask to see the paperwork.  Never heard of an LO with no end date.

Was it recorded?  Check title history online.  If it was done properly the Optionee (tenant buyer) has the exclusive right to buy, so you'd have to purchase the right from them.

Sounds like a mess. Are you buying it for less than the supposed option price?  Getting it under market value?  Can you even view or inspect it?