How can I protect myself on a lease option should the seller incur a judgement or lien against himself which attaches to the property during the term of the lease? Could I ask him when we set up the agreement initially to put the house into a Land Trust?
I did several contracts for deed in the past and never had any problems with the seller getting liens etc. I was just stupid and lucky. The hard part here could be how to ask the seller. Do not just jump and and say that you want to protect yourself from any misfortune he or she may have. Also the seller may object to a trust if they feel like they may loose control of the property. If you get their trust they will more than likely do a transfer into a trust. It also depends on how much cash you are investing as to how much protection you need. When I did my contracts for deed I put 0 down and had nothing to loose except my time and energy invested. The trust sounds like the best way and as long as you pay the bill you should be OK with using it. Hope my early morning rambling helps a little.
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737