Lease Options- Why Agreement Documents Are So Important
When a property owner has some property that he wants to sell but which is not moving fast enough, he may consider the lease option. This means that he can rent out the property, but with an agreement that the tenant will eventually buy the property within a period of one to three years.
As the landlord, make sure you hire an attorney as you and the tenant get into the agreement, remember that, this is just an option that the tenant could choose to walk out of at any one time during the contract period. In that connection, avoid using the words buyer and seller in the agreement. This is because the sale is not yet closed and in any case, this is still a tenant who happens to be a prospective buyer.
You therefore need to be well advised on what the default of the tenant means to you. Avoid using documents from the Internet and instead consult a lawyer in person. The second thing is to ensure that you document everything that goes on between you and your client. No matter how close the two of you may be, things may not turn out right and this is where you will require the documents to give evidence.
While still at documenting, it is wise for you to use separate documents for the lease and the option. This means that the option for the tenant to buy the property should be documented separately and the charges for the lease or rent should also be separate. This way, you will not have a hard time in court in case of any arising disagreements.
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