Newbie Confused...Pls HELP
On my Rental Lease Agreement there is a provision indicating a security deposit, I know it is not the same as the Option Payment so that is where my confusion comes in. Do I cross out that section and just go with the Option Payment or do I take a deposit? I'm thinking I shouldn't take the deposit since T/B is not actually renting. I know I shouldnt treat the O/P as a deposit since it is non refundable. :-? Im all confused here pls HELLLLLP. 
Your wisdom and xperience will be greatly appreciated.
You need to have two separate contracts. One would be the purchase option contract and the other would be a standard lease. Do not put the option money in the deposit area of the contract. The option money will be listed in the purchase option contract.
Thanx Michael,
I do have a seperate contract, "Rental Lease" & "Option to Purchase Agreement". What number if any do I put in the deposit section of the Rental Lease Agreement and does it carry over to the Option Agreement? My Option Agreement states that it supersedes the Rental Agreement, but Im confused here...umm
I wouldn't put anything in the deposit, because if they don't buy or default, you get the option money anyway.
Check the laws in your state regarding security deposits. In may be required to have a legal lease.
Deposits are refundable, option consideration is not.
I have a question for the pros. If the T/B does put a deposit and an option consideration, then exercises the option, can they use the deposit money as part of the purchase price? Or is it better to return deposit once the option is exercised?
I would use the deposit as a "motivation" for the T/B that is not buying to move out quicker since it's refundable.
I can't answer your questions but that does sound like a good idea. knowing that want get the option money but they will get something to get out of the house clean.