Check with a title company to see if it'll do it. I don't know about Hawaii, but in many other areas of the country, while it's legal, many title companies refuse to do it.

There are lots of other ways to accomplish the same thing. The most obvious is to assign the option. Generally--I'm not a lawyer, so this isn't legal advice--if an option is silent as to its assignability, it is assignable. So, if you have Owner A, Option Holder B, and Ultimate Buyer C, Option Holder B doesn't have to do a simultaneous closing with Owner A, then with Ultimate Buyer C. Instead, Option Holder B assigns the option (for whatever fee is agreed to by B and C) to Ultimate Buyer C. Then Ultimate Buyer C closes the transaction with Owner A.

That's the cleanest, simplest way to do it.

You can also use a land trust or an LLC. Option Holder B sets up a land trust. B excercises the option with A, then sells his beneficial interest in the land trust to C. Or, with an LLC, same process. B sets up an LLC. B closes with A, then sells the LLC to C. In either of these scenarios, at some point in the future, C brings the property out of the land trust or LLC and refinances, putting the mortgage into his own name.

Again, that's not legal advice, just scenarios to run past lawyers familiar with real estate investing and (if you use that one strategy) land trusts.

Hope that helps.

Tue May 20 2008, 04:32

Entirely Legal. However it is not legal to solicit a Buyer for the re-sale while in escrow with the Seller.
You cannot attempt to sell what you do not own.

Tue May 20 2008, 02:23

That is absolutely an attorney question. Email me if you need a few names in Hawaii.

Sat May 10 2008, 12:54