As an Owner setting up a Lease Option, should I record the Option with the county?
You, as the legal owner of the property, do not need to record the option.
If you are NOT the legal owner of the property, and are shooting for “CONTROLLING” the property, you want to record the option.
The recording prevents any judgements or leins to be attached to the title during the option!!!
Hope this helped A-Little!!!
Good Luck!!!
MONEY!!
Thanks Money. Are there any disadvantages to recording the option if I am the seller?
Well, I personally think it would be a waist of your time. Thats about all… Is there something going on in this contract that you are skeptical about?
MONEY!!
No, nothing skeptical at all. I just wasn’t sure if it would trigger a due-on-sale clause, or back me into a corner in any way.
Well, to protect you if thats what you are concerned about, Inform your lender that you are going to lease out the house!
As long as the payments are being made, you shouldn’t have anything to worry about.
Good Luck!!
MONEY!!!
Money,
"If you are NOT the legal owner of the property, and are shooting for “CONTROLLING” the property, you want to record the option.
The recording prevents any judgements or leins to be attached to the title during the option!!!"
Would you show me the statutes that prevent the IRS or a court ordered judgement or any leins from attaching to the property of the owner because there is an option on the property?
John $Cash$ Locke
Hey John,
I wish i had that info. This is something that i was tought to do since day one. I have been told this, Word of mouth!!
BUT… Since the subject has been brought up!!! I’m going to do whatever i can to find this info !!! 
Maybe I have been doing this for all the wrong reasons…
Anywho… as soon as i find the info “IF I DO AT ALL” i’ll post it!!!
MONEY!!!
Money,
Leins or encumbrances against the property owner attach to the property. No option agreement is going to circumvent this from happening.
It would be like saying the person who has a second on the property would not be affected, which also is not true, so an option would not stand a chance of surviving a lein or judgement against the property owner.
He who has the deed controls the property albeit an owner or an investor who gets the deed.
John $Cash$ Locke
jstoring98,
[quote="jstoring98
No, nothing skeptical at all. I just wasn’t sure if it would trigger a due-on-sale clause, or back me into a corner in any way.
A transfer of interest in a property can cause an acceleration of the Due On Sale clause, so when the owner gives you an option this is considered a transfer of interest.
John $Cash$ Locke
Thanks Cash. I thought I had read that by recording the option, the mortgage company would have a better chance/reason for forcing a due-on-sale clause. Thanks for the confirmation
Thats good to know cash… But as i said before, I am going to continue investigating on this! This is something i should have done a LONG time ago 
… theres got to be a reason i was told this, By more than one person!!!
Anywho…
MONEY!!!
But doesn’t recording the option help to get around any seasoning issues that might arise?
prof_obvious,
Glad to meet you.
There are no seasoning issues as title did not transfer, when title transfers then many but not all lenders look at how long the new title holder has owned the property.
John $Cash$ Locke
Nice to meet you, as well. By your posts, you are clearly very skilled at REI.
So, if you do a sandwich lease (which I am looking to start doing) and you have a TB that is exercising their option, you do a double close. Is there any seasoning issue in that?