LEASE OPTION AGREEMENT OR LEASE + OPTION TO PURCHASE

6 Replies

I have a Lease Option Agreement document, can I use this 1 document as my LOI and Option ?

I want to structure the deal using the Option Release Fee document. I am trying to stay from anything that appears  like I am "assigning" b/c Wholesaling is rampant in my city and I am a Realtor.  Charge 6% to release option and have Seller and Tenant sign a  Lease Purchase  Agreement at title company.

Does this make sense as far as structure the deal.

listing agreement my Broker owns the listing. I know she will allow Lease Purchase 

Then sign Lease Purchase with Seller ? Find Tenant .Charge 6% to seller and Tenant to release Option. Is this how it would work ? Confusing 🤨

listing agreement my Broker owns the listing. I know she will allow Lease Purchase 

Then sign Lease Purchase with Seller ? Find Tenant .Charge 6% to seller and Tenant to release Option. Is this how it would work ? Confusing 🤨

@Sharee Mitchell If you do it as a listing you don't need to wholesale or release anything. You just sign a listing agreement with the seller, find them a T/B, and give the 2 of them a lease and option to sign.

Have you done a regular listing for a traditional sale or lease? It's no different. Here in Ontario the province has a standard Lease agreement, and the Realtor Association has a standard Option to Purchase agreement which is nearly identical to the normal Agreement of Purchase and Sale used in 99% of all sales.

Of course, if you want to keep the deal away from your broker, then yes you'll have to become a principal and wholesale it. In which case all you really need is the Option contract. Once it's assigned or released the seller and tenant can sign their own lease agreement.