Lease optioning to owner and lease optioning to tenant buyer

General Real Estate Investing
1

Hello again, I have some questions about lease with option to purchase to an owner and lease with option to purchase to tenant/buyer.

If you arrange with the owner to lease with the option to purchase for a period of 2 years. Upon finding a tenant/buyer, you offer the tenant/buyer a one year, 6 month option to purchase the property. The tenant/buyer exercise his right to purchase the propery after the 1 year, 6 month term has passed. Is the following statements about this scenario accurate.

  1. Due to the tenant/buyer exercising their option, the investor in this scenario by default exercises his option to purchase the property with the owner that he has the 2 year term lease with option to purchase agreement.
  2. Is the above statement accurate if the investor places a provision in the purchase agreement with the owner (example: investor reserves the right to lease-option the property to a tenant/buyer)
  3. Or does the investor insert a provision in the purchase agreement with owner that if the tenant/buyer exercises his right to purchase the propery, the investor automatically exercises his right to purchase the property from owner?

Any feedback will be gladly appreciated.

2

Option language is tricky and you need to be sure you get it right or you risk being in breach with your tenant / buyer and losing your opton to purchase. You need language in both areas to protect yourself. Seek the help of a local attorney on this so you protect your rights.

3

Thank you for the information DirtLawFlorida. I will have to seek the counsel of an attorney that is located in the state I want to conduct these transactions.

4

That is definitely a wise choice. Good luck to you.