I'm looking at a property of which will be my primary residence, to buy and hold in AZ, but cannot find the answers for Arizona real estate law anywhere here on BP or online. Hoping someone here can help.
I am trying to devise a way to take control of this property, fix it up a bit to force its appreciation, then possibly seek a loan or pay it off after 1 - 2 years. The owner lives in Australia, is tired of landlording and just wants to sell.
Owner Carry Terms:
- Seller Owes: 95K
- Purchase Price: 120K
- Updates/Repairs: 15k
- ARV: 210K
He will carry for as long as needed - basically a wrap. It mostly needs updates (flooring, paint, kitchen cabinets), no major rehab. Unfortunately, he went the old method to a Title Company to do the wrap (we did not do sub2), and they wouldn't touch it (Title Co. reasons: Due on sale clause, Dodd-Frank, etc). I've gone to my attorney, but probably won't hear back for a couple days since he's out of town. I just don't know what the laws in AZ are or where to look. Owner decided we could maybe do a Lease Option with up to 5 12-month renewals.
I've done Sub2's in New Mexico and Nevada without issue, but not sure what to do with new laws in 2014.
What would be the best route to go here? Any advice would be sooooo appreciated!!
If your only goal is to gain control then keep it easy with a Lease/Option. Keep your option payment down low and extend your option period out longer.
That's actually what I had in mind thinking along those same lines. Just not sure what a good Lease/Option agreement is to use in AZ. The owner found one at Office Max, but it didn't seem like it protected the buyer much as far as insurance, etc. goes - very basic. Do you know of a good Lease/Option agreement that fits AZ or does it really matter? Also, someone else had mentioned a Land Sales Contract should suffice, any thoughts on that?
@Nick J. Thank you for your help!! Do you know of a good Lease/Option agreement that fits AZ or does it really matter? Does it need to be notarized or done with an attorney? Also, someone else had mentioned a Land Sales Contract should suffice, any thoughts on that?
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