New To L/O Question
When doing a lease option is it normal for the t/b to pay the option fee plus first months rent and security deposit at the time of signing? Also, does the t/b sign a standard rental lease in addition to the l/o contract. I am just trying to get an idea of how this works.
Thanks.
The best protection is offered by using 2 contracts, 1 rental and one purchase option.
Collect option payment, and 1st months rent. Have it in your rental agreement that you have received x dollars (1/2 months rent) as a security deposit and take this out of the option payment.
If they buy, the whole thing is credited anyways, if they don't the whole thing is forfeited, but it is hard to tell someone who just gave you $10000 that you need another $750 to protect you from them damaging the house.