Hey BP, I recently started marketing to homeowners who post their property online as rentals. A few of the owners i spoke with expressed an interest in selling their property to me on a lease option. I'm looking at one potential property where the owners asking price is 35% below market value. I got this far but don't know what to do next. Any advice from an investor, RE agent or attorney who is familiar with lease options in NC would be greatly appreciated.
You would be the buyer in the event you decided to exercise the option to purchase. As holder of the 'option', you should educate yourself on how the state looks at these transactions. The legal aspect is covered under Chapter 47G - Option to Purchase Contracts Executed With Lease Agreements. This is where to start. You should know the statutory requirements as either buyer or seller of a lease option in NC.
NC brokers will not help you. The NCREC used to have a standard lease option form, but that was a decade or more ago. Their official advise to NC brokers is to not undertake lease options. That basically means you need to find an attorney that will be willing to help in the event you can't figure out how to put together the lease (and addenda) and the option (separate contract) so that you end up with an enforceable contract. I'm not an attorney so please don't ask for my help. In NC I can only comment as I did above, without advice. See NC BAR summaries on practicing law and NCGS 84-2.1 - "Practice law" defined for statutory details.
Hello, @Andre Vitalis . As Chris stated above there are some codes specific to the Tar Heel State. My go-to guy for all matters concerning lease options in NC is Steve Atkinson. He's a long time lease options investor, and a licensed agent in NC. You can find him here:
Tell him I sent you. . .if he doesn't hang up on you, he'll be most helpful. :-)
Thanks MC, Had a good chat with Andre and I didn’t even hang up on him. How do you like that? hehe!
Lease Options are great in NC and there is no need to work around those pesky regulations, better to do it correctly and comply. We are investors not attorneys. Let the attorney do the dirty work and we can concentrate on getting the deals.
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