Elena's Movie Review Madness

Reviews from my 11-year old mind!

Anson argues that each party to a lease option should exercise due diligence for the company it is dealing with. He says a reputable leasing option company has a recognized complaint process, liability insurance, and a privacy license. By giving a tenant buyer this put option, you can differentiate yourself from other landlords and allow yourself to charge a higher rent or fee to give the tenant buyer such an option. It can also encourage the tenant to stay longer in the property and keep the property in better condition than a typical tenant. To encourage the buyer tenant to enter into the put option, the transaction may need to be structured in such a way that a portion of the funds paid counts into the purchase price, which can then serve as the tenant buyer`s deposit, helping tenants obtain a mortgage product that allows them to complete the purchase during the put option period. All parties must keep records of these payments, as the tenant buyer`s mortgage lender may require proof of payment if the tenant buyer wishes to purchase a mortgage. There are several reasons why a real estate investor may want to enter into an option contract. Some of the most common reasons we see are when buyers need time to study the viability of the property for development, get financing, apply for a building permit, or simply get control and manage the property and benefit from an increase in value in the meantime. Those who currently own a portfolio can also market their properties in the rental market to tenants who wish to buy under an AST with an option to purchase at a certain price during the option period. This offers many of the benefits described above to differentiate yourself from other landlords and attract long-term tenants who will receive the property at a higher level. An option contract gives the potential buyer the right to provide written notice to the seller during the option period. The notice informs the seller that the buyer intends to purchase the property and triggers a countdown to the closing date of the purchase.

Completion usually occurs 21 days after the notice is delivered (although the parties may agree otherwise), so it is important that a potential buyer has done the necessary research on the property and received financing before receiving the notice of termination….

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