Wondering what more experienced lease option landlords to?
I can use a lease option contract which states rental rate, option fee, basic terms OR have a rental agreement & separate purchase option agreement.
This is for a property in Pennsylvania.
Another need would be an attorney who has boiler plate agreements I can engage. Don't need to recreate the agreements.
I don't reside in Pennsylvania, but generally if you're selling a home on a lease option, you want to have a completely separate lease agreement. Keeping the rental and option to purchase separate will help protect you in the case of a default so you can evict instead of having a judge force you to go through a foreclosure because a tenant claims equitable interest.
Good job Mike. But the other problem is in the financing later on for the buyer qualifying for the required LTV with the credit given being based later on by the appraisal, you do not want to go there. Never use one contract with a lease and an option together, always use separate contracts. Search here on BP for details, it's been beat to death. :)
Like the others said have separate contracts. My option contract references the lease saying the buyer must maintain a lease on the property in good standing.
The lease does not reference the option contract.
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