Guys,
When putting together a sandwich lease how does one go about renewing the contract if the tenant buyer does not excercise the option to buy towards the end of the 1-2 year term?
Is there a new option fee that should be put down? Do either parties loose down payments? Do you re-negotiate the purcahse price? Any information relating to a buyer that does not exercise would be greatly appreciated.
You are talkng about getting the seller who gave you his house on an option to give you an extension?
He doesn’t have to. If he decides not to extend, and you do not exercise your option and purchase the property, then you lose your option fee.
If your tenant buyer doesn’t exercise his option and buy the house, he loses his option fee (unless you used a contract from an office supply store instead of having a local lawyer draw it up, and then there is no telling what is going to happen)
If you can get the original seller to give you an extension, you will have to pay an additional option fee. The original option fee that you paid has been all used up.