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?

Comments(5)

  • LeaseOptionKing4th September, 2004

    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.

  • dealfinder4th September, 2004

    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]

  • JohnMerchant4th September, 2004

    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]

  • rajwarrior4th September, 2004

    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

  • LeaseOptionKing5th September, 2004

    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.

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