When selling on a lease option do I need to have a Sale contract drawn up and signed when my tennent/buyer signs the option agreement? Or should that be done when they excercise their option? Thanks.
Terry
It depends on your state. In Texas a buyer can back out of a contract if a property condition has not been signed. Sign a contract with the PCA at the beginning and you could be subject to the stringent CFD statutes.
You may want to say in your option contract cash, as is where is, no help in buying. If they don’t exercise on those conditions you don’t lose and you limit liability because you promised nothing.
Thanks Bud that helps. It sounds like it would be a good idea to have the as-is clause in the option regardless of state.
Terry