Legal Aspects Of Lease Options
Channel: Middleton REI
Date: 2017-05-01

These are the legal aspects you MUST consider when doing lease-options in the USA. 

Lease-options by definition are leasing a property with the option to buy it later at a pre-determined price. You are not obligated to sell if conditions change unfavorably, but if you DO decide to buy, the seller is obligated to sell, b y contract.

Lease-optioning a house for sale is a form of "seller-financing", along with Owner-Financing, Rent-2-Own and Land Contract. 

As an investor, we do not actually sell the house, but rather we sell an "OPTION" to buy the house. So, who sells the house? The seller does. Otherwise you would be required to have an active realtor or broker's license. 

Just so you know!

There are several states that have restrictive guidelines when doing a lease-option on real property, or real estate. They are as follows, in their most severity of restriction:

1) - Texas - Lease is limited to 6-months and buyer must be building equity by the end of that 6-months.

2) - Maryland

3) - Ohio, and 

4) - Oklahoma.

It is highly suggested that you hire or consult an attorney in the respective state you wish to do lease-options in, especially Texas. If not, you're playing with fire.

Hope all this helps someone. Leave your questions and comments in the sections below and I will respond as soon as I can. Thanks in advance!

http://www.MiddletonREI.com

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