I have tenants that had a lease option which has expired. I allowed them to stay and continue to rent. I froze the option credit and offered to let them use the credit if they buy. If they don't buy they forfeit the accumulated credit.
How does Dodd Frank / SAFE effect this transaction? The original agreement predates Dodd Frank.
Where can I find out the details as they pertain to NY and VT?
So far you haven't mentioned anything that to me triggers any DF issues.
How bad do you want to be cashed out? If you can stand keeping the rental and collecting rent, you have an ideal rental situation in my view.
Some day they'll have a lifes event and need to buy or move. You can address the option fee at that time. You are just governed by conscience being a good guy and the option contract in my view.
Given market conditions and they've been in the property for a few yrs probably. it's also time for a rent increase. Re-write the lease and use the option fee to pay the rent increase for xx months... Just offering my view.
Any modification, extension or other arrangement concerning your deal will be subject to the DF/SAFE Acts. I suggest you see a mortgage originator and an attorney. Consider doing a Sub-to or note and deed of trust. I suggest you stay away from the "rent-to-own" concept as it may well back fire on you, much has been addressed about the RTO stuff here on BP, search and you'll find more than you want to know. :)
Thanks Curt and Bill! I will be sure to do my research and contact an originator and an attorney.
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