I have a few Lease Option questions that I really need answers to. I have gotten different, contradicting responses that are driving me crazy!!! If anyone has experience with Lease Options could you please help me out, here they are (these are mainly Sandwich Lease questions):
The insurance issue still confuses me. In dealing with the “actual” owner of the property, I have been told to “ask” to be put on the insurance policy as a “loss payee” or “additional insured”. What if the owner is skeptical or refuses? How am I protected in the transaction if this doesn’t take plac? Also, they should also get a Landlord’s policy, correct?
What type of escrow instructions are used when setting up escrow? Do we ALWAYS insist on putting the deed into escrow when dealing with the “actual” owner?
How are option consideration and rent credits actually credited? When the Tenant/Buyer tries to obtain future financing from a conventional lender to “close” the deal, will they still have to come up with another “big chunk” of money for a down payment? For example, I imagine if they put down a $9k option they wouldn’t be too happy if they had to put down another $9k or more 12 months later to obtain conventional financing. How does this work?
Thank you so much in for helping me clear these issues up!!!