Option To Purchase, Defined Time Frame?

I read somewhere that it is possible to write an Option to Purchase with an undefined time frame. Is this possible in Massachusetts. I have two situations right now where this would be mutually beneficial.

[ Edited by bennyboy on Date 03/09/2006 ]

Comments(8)

  • mtnwizard9th March, 2006

    Just set up a Land Trust for the father in his name. He can retain 10% and grant beneficiary interests to both his son and you. When he dies, you avoid probate and you and the son can work out the details easily as co-owners of the trust. [ Edited by mtnwizard on Date 03/09/2006 ]

  • LeaseOptionKing9th March, 2006

    An Option has a few crucial elements--one of which is a defined date in which it expires.
    [addsig]

  • commercialking9th March, 2006

    An option without an expiration date will be held invalid.

    What you want is a "life estate". Get the book for the state RE license prep and look it up.

  • mcole9th March, 2006

    LeaseOptionKing and Commercialking,

    Good point!!! If he does it as an option, it HAS to have an end date.

    Sheesh… I guess I was having one of my senior moments. LOL

    Thanks!

    : )

  • LeaseOptionKing10th March, 2006

    Glad the resident Kings could help. LOL
    [addsig]

  • mcole10th March, 2006

    I humbly bow to the willingness of both our Kings to point out the errors of my dumb answers. LOL-LOL

    : )

  • IBuyHousesInc10th March, 2006

    Ck isnt there a tax issue with the IRS for a long term lease with option?.

    I thought I read somewhere that they consider a long term lease an attempt to avoid taxation...

    and let me state I am Dumber than dirt...
    [addsig]

  • LeaseOptionKing10th March, 2006

    I think CK is just talking about an Option. But, yes, the IRS can treat a L/O as an installment sale if for five years or longer.
    [addsig]

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