Lease/Optioning Back To The Original Seller

Hi all,



I’m hoping for a definitive answer on the following question:



Is there a way to purchase a SFR then lease it back to the seller under a L/O agreement without asking for a law suit in the future?



I have a realtor who is bringing me short sales where the seller likes the house and wants to stay until their credit firms up at which time they want to buy it back. I can finance these to get in with nothing down, then do a L/O and sell it back to the original seller in a year or two.



I know a court might say this is taking advantage, and I know you can get sued for just about anything.



But…..what I would like to hear is this: Has anyone done this successfully, has anyone done this and run into problems in the long run? Has anyone actually been sued and lost? Or won?



Thanks, Brian.

Comments(4)

  • IBuyHousesInc11th January, 2006

    The problem for you isn’t the lease back it is that your agent cant represent you because you are an equity purchaser. California requires that if you use an agent that the agent be a real estate licensee and that they carry a bond equal to twice the purchase price...

    This bond is unavailable to your agent.... they can learn more at www.car.org

    They also require this information to be given to the seller and if it isn’t the seller can resend the transaction up to two years after it transfers....

    The idea of Lease back to the seller with an option to purchase is done all of the time and if you need the forms let me know....

    Here is the link t the 1695 code for your reading...

    http://www.leginfo.ca.gov/cgi-bin/waisgate?WAISdocID=01653214360+0+0+0&WAISaction=retrieve
    [addsig]

  • bnwbaron11th January, 2006

    IBUY, Thank you for the response and the offer on the L/O forms.

    The realtor is in Utah, if that makes a difference,,,,,and the link comes up empty. Can you try again?

    Thanks, Brian

  • bnwbaron12th January, 2006

    IBUY, Thank you for the response and the offer on the L/O forms.

    The realtor is in Utah, if that makes a difference,,,,,and the link comes up empty. Can you try again?

    Thanks, Brian

  • IBuyHousesInc12th January, 2006

    http://www.leginfo.ca.gov/cgi-bin/waisgate?WAISdocID=09482718347+0+0+0&WAISaction=retrieve

    Read this and you will have a clearer understanding of the requirements put on employees and agents

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