Home Buying in Phoenix>Question Details

tmwoods84, Home Buyer in 85234

Any buyers agents with experience with Lease Option willing to share the contract they used to structure the deal?

Asked by tmwoods84, 85234 Wed Nov 28, 2012

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Answers

6
If you understood LEASE/OPTION you wouldn't ask that question:
There are so many variables, there cannot be a FORM:

Lease/Option
You are desperate!
Your Credit or Finances, or both, will not allow you to go the conventional route:
You need the Seller to help you out!

The Seller will know it, and you are going to pay dearly for this service:
There aren't too many altruistic Sellers out there.

The terms that can be written into a Lease/Option can be dangerous to you:
How long is the Option period?
How much money are you putting in to the Option?
What happens if you are not able to execute the Option?
How do you know what your financial situation will be 2-5 years from now?
How much is the rent in the meantime?
Who will be responsible for maintenance and repair in the meantime?
What will be the Market Value of the home in 2-5 years?
What will be the Selling price 2-5 years from now?

This is the Ultimate Caveat Emptor!
1 vote Thank Flag Link Thu Nov 29, 2012
Lease options are a lawsuit waiting to happen. Work with an agent that has "extensive" experience doing these. It's not just a matter of finding a workable contract...you really need to know what you are doing. Alternatively, contact a real estate attorney.
0 votes Thank Flag Link Thu Nov 29, 2012
Definitely contact your broker as your broker may require something other than I could give you. You want to make sure you are protecting your buyer.
0 votes Thank Flag Link Wed Nov 28, 2012
Absolutely. My Broker has actually asked that I bring Him something as a basis for approval. Do you happen to have anything you could give me? Thanks!
Flag Wed Nov 28, 2012
There is much, much, much more to Lease Options than acquiring the contract. If you are not fully knowledgeable of the legal issues, the perils that exist for the seller, the disclosure that MUST be made to the buyer, the exit strategies, the 'real' objectives, you are in over your head.
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As others have noted, consult your broker. These are such high risk transactions your broker may be less than enthusiastic. Then hire the attorney with whom your broker has an existing retainer to create a durable, bullet proof, contract specific to the real estate laws and practices in Phoenix and acceptable to your brokerage. There is a gigantic "sue me" bulls-eye created that your broker must be willing to accept..
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Lastly, as the URBAN TEAM hinted, make sure you know how you will be compensated. 1% is not a good indicator.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
0 votes Thank Flag Link Wed Nov 28, 2012
I would suggest you speak with your Broker in your office about how they want you to do that.

Good luck.
0 votes Thank Flag Link Wed Nov 28, 2012
I'd contact your broker to make sure you follow his/her structure for a lease option. Our broker's approach is separate lease and purchase contracts with language linking the two. Your broker may have a different approach.

Did you know that according to a recent survey, less than 1% of lease options work out to a successful purchase?
0 votes Thank Flag Link Wed Nov 28, 2012
I've spoken with my broker and He basically asked that I bring Him something for approval.

I've heard the success rate is very low, but my understanding is that it can be increased dramatically if structured correctly.
Flag Wed Nov 28, 2012
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