1st deal lease to own please help.

the owner has a clear tittle to the home,her father gave it to her.how do i protect myself here.I plan on taken the lease own option contract to the deeds office and file it with them so there record of the deal,also whats to keep the owner from getting a loan on the house while under the contract of the lease to own.I just dont want it to come down to the point were i go to purchace the home in 5 years and theres truble with the owner,and i loose my down payment and money from my monthly payment thats put tords the balance.

Buying on lease option IS a risk. I’ve done it many times. You need be sure the lease-option contract specifies that the owner will not further encumber the property. I also always insist on paying the owner’s mortgage, taxes, and insurance directly so that I know it’s been paid. One of the bad things that can happen is that the owner stops making his mortgage payments at some point and the first you hear about it is when the sheriff knocks on the door to evict you. I know of instances where that has happened.

Good Luck,


I don’t disagree that negotiating the terms of the lease option to protect your interest is a good idea, but isn’t this just a straight RE transaction? You are simply a tenant until you exercise the option at which time the seller must deliver title clear of any and all encumbrances.

Yes, it is just a lease, but you may also have a significant option premium on the line. More importantly, if you are doing a sandwich lease, you are obligated to be able to sell the property on demand. If the owner changes his mind or doesn’t pay his mortgage, YOU can be in trouble.


You are leasing the house with an option to buy. Get a purchase and sales agreement to buy based on the terms layed out in your lease and option agreement. Go to the court house and file an affidavit and memorandum. This will alert the world that you have the house under contract. If the owner tries to get a loan against the property the affidavit and memorandum will show up on title. No one will insure the title when they see that!

By the way…it would be to your benefit (based on my experience at least) to make the lease with option to purchase all 1 contract. Savvy landlords will make the lease one document that does not mention the option at all, then have the option totally seperate. The problem with this is that if you, as the tenant, can not produce the option agreement(maybe the dog ate it) then you are going to be evicted as if you never had the option to buy. However, if you can produce an option agreement you could force a foreclosure because you have a vested interest in the property. DISCLAIMER: I am in Florida. I have been through this first hand in Florida. Laws differ from state to state.