Richmond, VA · Member since 2017 · 35 posts · 4 votes
I HAVE A BUYER IN PLACE WHO WANT THE HOUSE I HAVE UNDER L/O WITH SELLER. WILLING TO PUT DOWN 5% OF PURCHASE PRICE AND PAY MONTHLY RENT A MONTH. I PUSHED IT TO HIM FOR 10K MORE THAN I HAVE WITH THE SELLER. WOULD I REPLACE THE OWNERS NAME WITH MY NAME AND THE AMOUNTS BETWEEN ME AND T/B TO GET MY FEE UP FRONT AND CATCH THE 10K ON THE BACK END. THEN TURN ALL PAPERWORK INTO TITLE COMPANY TO TAKE CARE OF THE REST CORRECT? I BELIEVE IM ON THE RIGHT TRACK JUST WANT TO VERIFY.
With an assignment (LOA), all parties remain - seller is Optionor, you are Optionee. You assign for a fee and are done.
With a sandwich, you perform with the seller as agreed initially. When you sub-lease, sub-option, you become the Optionor because you now have the right to Option to your TB.
Sandwiches are not for rookies. You are responsible for the performance of the TB and for the property condition for the whole term. If the TB doesn't pay, you have to. When the option expires, you are responsible for removing your TB, catching up all missed lease payments and getting the place back to current condition.