Legal Steps Of Lease Optioning A Property
Can someone tell me the necessary steps to lease option a property to someone? I know something needs to be recorded at the county records office but not sure what?
Can someone tell me the necessary steps to lease option a property to someone? I know something needs to be recorded at the county records office but not sure what?
Some states are cracking down on creative real estate, in so much as they want to prevent acting like an agent without a license. You can record the Contract (not advisable) or a performance mortgage (not easy to get the Seller to agree to) or a Memorandum (recommended) to prove your Equitable Interest in the property.
Each state is different and the best advise would be found at your local REI club with someone who successfully does L/O contracts in your area.
I am in California and I always record a "Memorandum Of Option" with the County Recorder's Office. This clouds the title which is sufficient. Good Luck.
Dave
[addsig]
While I sure do believe in recording something showing my option, I do recall having some problems in CA because CA has (or had ?) a short laundry list of recordable docs....and the recorder wouldn't take a Memo of Interest.
Have the CCCs changed so you or I now could record such a Memo of Option, or Memo of Interest?
[addsig]
People, read the question please, before posting your answers.
Unless it is required by your state laws (but to my knowledge I know of none that require leases or options to be recorded) I would never record anything if I was lease optioning a property TO someone. That is only going to seriously complicate matters for you when you have to do an eviction.
If you don't know the first thing about L/O's, then go to your library and pull off a few books on the subject and read up. Then visit your attorney and have him draw up some contracts that are specific to your particular situation.
Roger
Oops! My bad! Raj is correct as usual. :p You would never record anything if you are the Optionor; as a matter of fact, my Contract states that the act of recording it or a Memorandum renders the Option null and void.