Wednesday, October 29, 2008


Over the next few weeks I am going to blog on the topic of Real Estate Options, also called “lease to own” and “lease options.” The blogs will address several questions:

  • Why option? Motivations and benefits for buyers and sellers.
  • How do you do it? The documents required to establish an option.
  • Negotiations? The interrelated aspects of price, term, option fee, rent, portion of fee and rent applied to down payment, all of which are subject to negotiation.
  • Closing costs? Title, escrow, MOU, junk fees, inspections, and real estate agent commissions are among the costs paid by both buyer and seller.
  • Lender? How and when the lender gets into the picture.
  • What are the risks? For both buyer and seller, there are plenty of ways for things to go wrong.

The context for these discussions will be California residential properties and the documents used will be selected from the libraries of the California Association of Realtors (CAR).

Please feel free to contribute with your own insights and stories.

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