Option To Purchase Questions
Can you tell me exactly how to do this kind of deal. I read an article that said the form should say “Seller allows buyer exclusive 30-day (60,90) option to buy property”……… Where can I find or buy the rest of the Document. Should you give the person at least a dollar to make it legal? Finally should I take it to the court house to make it public record? Will the people at the court house know what to do with it or if will I have to explain it to them? THanks, Mark
Here in WI you can buy the form at Wisconsin Legal Blank (they sell all kinds of legal forms, docs, etc for very cheap).
It is called WB-24 Option to Purchase. Don't know if its the same in IL.
You will have to give some form of consideration, yes.
A dollar might work, depends on your rapport w/them. I doubt it however.
You may also have to pay some earnest money when the offer is made to show you are serious. Maybe.
If you fill out the form you should have your attorney double check it IMO. At least your first offer until you get more experience.
I don't know if you have to "record" it at ROD, good question.
Good luck.
Don
What happens if you get the option from the home owner and then you bring out the investor and he says that he will just wait until the option is over to buy the propery and does not give you anything? I guess just not work with that investor anymore or could I take some legal action?
You can find some forms in the "freebie" section of this website. See the bottom of this page for a link.
Quote:
On 2004-04-22 13:05, heyshid wrote:
What happens if you get the option from the home owner and then you bring out the investor and he says that he will just wait until the option is over to buy the propery and does not give you anything? I guess just not work with that investor anymore or could I take some legal action?
I was just curious about this question myself... Can anyone answer this please!!
Thanks in Advance
There is no rule to prevent an investor from simply waiting out your option (well, you could get them to sign a non-compete agreement). Thats why you want to deal with honorable people and get long options.
Perhaps you can put in your l/o contract the right to extend your option...which should deter your Investor from such games. Also I read where you do a affadavit of memorandom instead of recording it. This doesnt describe the financial details of the deal thus keeping
paper chasers in the dark.
bob
I do many options to purchase, currently I have 40 or so in force, in my option agreement I have a clause that says "landowner cannot sell property to persons presented to landowner by optionee during option until twelve months after expiration of this option without paying optionee equity due him had option been exercised within time frame."
i also do record a notice of interest on the property for one year + optoin period, so if the landowner were to sell it after my expired option, the title company would call me to get rid of the NOI, I would than ask who is buying, if it is my contact, I WILL get paid!
Rock on
All of the above can of course be avoided by proper negotiation. I have had a Buyer inform me that he is waiting out the option. I merely go to another and close out the option and let him stand there happy in himself.
I find the main item in this type of transaction as it is in all such items if they be housing or guns or cars or land it is all the same. You can if you have it notarize record your option so that is a a cloud on title. But as I said before deal correctly, and know your participants. Also one great weapon. Stay close to your deal, talk to them, help them with other small choirs. Whatever.
I had one client whose house I helped move to another entity before the roof fell down, say to me, "Well Lucius, I guess this is the last I will see of you? No No I took him out that night and introduced him to his next wife. He was lying on the floor of the bar at the time, but nevermind.
Lucius