Who is responsible for Taxes and insurance in a Lease/Purchase Option?? :-\
Well, it’s a lease with the option to purchase…soooooo…
Who is responsible on a lease? Same rules apply. If you start treating a L/O as anything different you really run into the ‘equitable interest’ concern of an executory contract.
You are responsible for the taxes, insurance and maintenance on a lease. You can, of course, write the lease however you want it, but then you run the risk of equitable interest for the tenant.
On a sub-to, since the property is deeded over to me, would that make me responsible for the taxes, or can the contract specify the seller is still responsible until the house is sold? If i am responsible for the taxes, versus the seller, how would a deal be structured in order to make it profitable.
RErookie,
If you take a property SubjectTo, your bought the property. As far as the seller is concerned, you are the owner from the day after you went to settlement. You are repsonsible for taxes and insurance until you sell the property to your buyer.