How and where does closing take place on a lease option assignment? Also, what forms should be recorded if any? Thanks
Hi,
You can prepare all the documents yourself (Lease Option) and sign it with both parties in front of a notory, then take it in to your county recorder and record it! (Make sure your state allows Lease Options as there are states that require the lease and the option agreement be signed and notorized seperately and neither document can refer one to the other.)
Then I recommend setting up a servicing account at your local title company (Escrow or Attorney Closing office) and set up the underlying mortgage or mortgage’s to be paid through servicing escrow along with the property tax and insurance impound.
This way the Lease Optionee is assured the mortgage is paid everytime a lease payment is made and the other party is sure the lease is paid and does not have to spend time or effort making out payments or providing proof of payments to the Lease Optionee!
If there is any positive cash flow to the owner it is paid either by bank transfer or paper check and sent to the owner!
GR
Thanks a lot GR