LEASE OPTION AND DEATH OF OWNER?
What happens when you have a lease option with a person and they die during the lease?
We are negotiating with an 85 year old man that wants to get rid of his properties but we are nervous about how to handle this.
Any advice would be helpful!
With a good solid contract you should not have any problem along as he is competent legally when it is signed.
Jim Freeman
Check the laws of your state. In states I am familiar with, the heirs of deceased are bound to uphold the contract the deceased entered into.
Thank you both for your responses.
You mentioned that you are doing a lease option with a property owner who is 85 years old and wishes to divest himself of properties.
You might enquire as to his health and future expectations. If he is truly a full fledged Altakocker, I suggest you attempt to turn this into a sale with him taking back a 100% loan or break it up into two loans one at 90% and the other at 10% or even more so. If he will expose to you what he plans to do on his exit from this level of existance, perhaps leave some of his accumulated mortgages to a home for unwed mothers, or give it to some member of his family, it might truly be to his benefit to proceed from landlord with all of its duties, to Beneficiary of a Mortgage which then consists in receiving payments every month. I really would explore that possibility. Relatives are so insensative when they inherit properties. Lots easier just to continue making payments on a mortgage/trust deed.
I recently divested all of my worldly goods amongst my many relatives and inumerable children. There was a meeting followed by a party, you should have heard what they are going to do with all the goodies. Thank god I won't be here. But alas there are all my tenants, and gentle folks paying on mortgages. God help them. Soooo I suggest you try for conversion into ownership. Besides it looks better on your statement very positive on a FICO report. By the way I wrote glowing reports on all those who had paid me. Yes, I included the Hippy Artist who kept a steady five payments in arrears. Also the nice man with the cards up his sleeve who offered to play a hand of cards double or nothing re: his back due rent. As to the charming manager who has been renting out the vacancies on a nightly basis. I left him a life estate to that unit which was always officialy empty. The units I left to my dear friend who took five times to pass the bar. He is deadly. Good luck ex manager, I suggest you start your car every morning by remote. I agree he has problems with all numbers other then prime. But does he have a love of money. A life estate in one unit out of 36 should be a fun position to be in. But he earned it.
I do hope this has been helpful. Perhaps its all the Chemo within me. So much in fact I think I can heal everyone by simple laying on of hands.
Cheers Lucius
It may be beneficial to you to look into getting a life insuracne policy on this fellow. I have no idea what it would cost, but...
...just an idea
Goodness Lucius, I LOVE your name. It's the name of the little boy on Gladiator. lol. How sad that you are taking Chemo! You seem to be in good cheer about the whole thing! Good for you. You have my sympathies and my prayers as well. Hope you fully recover, Take care, God bless. Alida
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