What if your unable to find a buyer for Lease Options deal

6 Replies

Say I have a lease option contract deal with a seller who is agreeable to do a lease options deal, and we agree on X-amount per month for a lease, what if I'm unable to find a buyer in 2 months. Will I be liable to pay the lease? Or is there something I must state in the contract that allows me to back out, in the case I am unable to find a buyer so I would not have to pay the monthly lease to the seller?

Originally posted by @Nam N. :

Say I have a lease option contract deal with a seller who is agreeable to do a lease options deal, and we agree on X-amount per month for a lease, what if I'm unable to find a buyer in 2 months. Will I be liable to pay the lease? Or is there something I must state in the contract that allows me to back out, in the case I am unable to find a buyer so I would not have to pay the monthly lease to the seller?

 You would pay the seller. If you don't have the money in the bank, don't do the deal.

@Nam N. Make the agreement subject to locating a qualified subtenant or assignee. And to make it fair to the seller, give them the right to continue marketing the property on their own and cancel your contract at any time prior to you signing that subtenant.

From what I learned, little capital is needed to do a lease option. Yes I under with some capital things might be a bit easier. Thanks @Doug Pretorius that makes a lot more sense. I would not want to risk paying the seller, if were not able to get a buyer tenant.

It depends on the documents & terms used in the deal.
If you need a simple lease option document with a contingency clause, just message me.

It will let you back out if you don't find a buyer, without paying anything out of pocket.