Dallas-Fort Worth Real Estate Investor Club

Lease Option

  • 13 Feb 2017 2:21 AM
    Quote
    Message # 4606331
    Anonymous
    Just to be sure, when I lease option a home, the seller will need down payment (option fee) to begin and also need bank loan down payment when time to execute purchase comes correct? 


    Also want to know how to setup and make contract so that a portion of rent goes towards purchase credit...


    Thank you.
  • 13 Feb 2017 8:44 AM
    Quote
    Reply # 4606630 on 4606331
    Neil Aggarwal

    It depends on the landlord.  Some just give you a credit towards your down payment of $x per month you rented.

      Neil Aggarwal
      NSA Partners, Ltd.

    Last modified: 13 Feb 2017 8:46 AM | Neil Aggarwal
  • 13 Feb 2017 5:51 PM
    Quote
    Reply # 4607577 on 4606630
    Anonymous
    Neil Aggarwal wrote:

    It depends on the landlord.  Some just give you a credit towards your down payment of $x per month you rented.

      Neil Aggarwal
      NSA Partners, Ltd.

    Thank you
  • 13 Feb 2017 10:10 PM
    Quote
    Reply # 4607867 on 4606331
    Robin Carriger (Administrator)

    This is only my opinion and should not be construed as legal advice.  If you don't do the transaction correctly and the tenant/buyer stops paying you, you could have a difficult legal situation on your hands which could result in some very stiff penalties for you based on Texas law.  You might also have to foreclose on them rather than evicting them due to them being judged to have attained equitable interest in the property through their down payment.

    I'm not trying to scare you, and I'm not trying to say that you cannot do the transaction legally, but I am recommending that you consult an experienced Real Estate Attorney like Milt Colegrove before pursuing this.

    Thanks,

    Robin
  • 14 Feb 2017 2:44 PM
    Quote
    Reply # 4609142 on 4606331
    Deleted user

    I'd have to agree with Robin on this one.  Don't do lease options in TX unless you follow strict guidelines.  What I would rather do is a straight lease and once tenant is ready to purchase sign a purchase contract. 

  • 15 Feb 2017 8:01 AM
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    Reply # 4610276 on 4606331
    Milton Colegrove

    Without giving legal advice, I would certainly avoid lease options, the statute is very tough on the landlord. There are plenty of other options available to you. 
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