Protection In Lease Option
If I L/O a house and then put a tenant/buyer in it, how do I protect myself from the original owner using the house as collateral to secure a loan or taking a line of credit on the house.
Is there something I can file at the county courthouse?
Thanks for any help!
You can get a seperate agreement with the seller. Also file a memorandum of option or the acutal lease/option agreement with the county.
Thanks Scott. I had heard there was something to file at the courthouse, but I didn't know what. Thanks for the information.
The best way to secure your agreement in one of these deals is to put yourself in control.
I would approach the seller and have them place the property into a Trust and what I would do then is to have the trustee (or you as manager) enter the agreement as OPTION and then your company enter into the Lease Portion.
Two protections here and a ton of benifits.
One is from Seller getting money out of the property. The deed is held by the trustee.....Mutually between you and the seller.
The protection from lease portion is now you have a true lease agreement just in case you have to evict.
Or better yet. Don't do lease option deals unless you sell and buy SUb2......you will be a happier person <IMG SRC="images/forum/smilies/icon_biggrin.gif">
[ Edited by JR_FL on Date 09/16/2003 ]