Lease/Option Assignment
I usually deal in rehabs so I need a bit of help here.
I am the seller of a property which is under lease/option which is about to come due. The buyer now wants to assign his option to a third party, which is allowed in the contract, but it "seems" he wants to do a simultanious closing.
His comment regarding the asignee is that he asignee wanted his financing to include purchasing the unit from me, pay the buyer a premium, and do it all at one time.
The contract is pretty vague regarding what may or may not be done, but In my mind if you assign (sell) your contract it should take place before the actual sale of the property takes place. The fact that the asignee appears to want to roll his assignment purchase into the purchase price concerns me. How would this appear on the HUD?, etc, etc.
The state is Florida...
Is this legal?
Do I have to accept the assignment under these circumstances?
Thanks for the assist!
A few states frown upon assignments, but it is mainly straight Options that raises a red flag. I'm deducing from your Post that the person in question has actually lived in the property for several months. Yes, this is perfectly legal, and it's common. I don't see how his Buyer will be able to borrow the money to pay for the assignment, though. He is a bit vague, but it sounds like he isn't actually having a simultaneous close, since his name won't be on the Deed. His Buyer will be taking his place in the transaction and paying him his difference as an assignment fee. If successful, you will be paid the agreed-upon price, and if not successful, you haven't lost anything (the Option would just expire).