Have your lease for your condo reviewed by an attorney.

Dear Marilyn, The answer is short and very simple. Contact a good REAL ESTATE ATTORNEY!! Someone with contacts in the town in which the condo is located. If the attorney happens to live there so much the better. If you need a name contact me. Good Luck

This is a tricky situation. Two friends, both in financial trouble, doing a business deal together spell trouble. Please make sure you spell out every single term of the option in writing with your friend beforehand. Realtors are not attorneys, so I am not giving out legal advice. Please consult your attorney before entering into any written agreement as it relates to real estate.

Here is what I would do. Don't sign an option agreement contingent upon your friend selling their home. You may be locked into an agreement longer than your foresaw. If you sign an option agreement, set the sale price in the agreement. Make sure you are receiving monthly rental payments comparable to market rates. You are not doing anyone a favor by deflating the value of your property by giving your friend a "break". Allow your friend the right of first refusal with a time limit. Credit your friend a percentage of the rental payments towards the purchase, contingent on a successful sale to the friend. No sale, no credit.

Don't assume anything. Spell out everything. Your friend will quickly turn into your mortal enemy if the business relationship goes bad. Where will you go if you rent the condo? If you need other options...AskRey.

-Rey Hollingsworth Falu
Licensed Associate Real Estate Broker
Houlihan Lawrence
917-855-0277

Hi Marilyn ,

“Financial trouble” is a vague term. If you would like to talk to me privately about what kind of financial trouble, I can give you my opinion as a realtor and also direct you to other professionals who may be able to help you.
Feel free to call me at 914 393 3814 or email me .
Joan Penn

With an option to buy, the purchase price is usually set at the time of purchase since market value changes. If you give an option, you should have a time limit on it. You don't want your friend to have this option indefinitely. Affordability is also something to consider if your friend is in financial trouble. If for some reason your friend stops paying you rent, you would have an eviction to deal with. If you decide to go ahead, you will need to draw this lease up with the help of an attorney. This is not something you should handle on your own. If your friends credit rating is compromised, he/she may not qualify for a mortgage. There is a lot to consider here and my experience is that most attorney's don't like options since the person giving the option is giving up their rights.