Pure Option Question
I am in the process of getting a "pure option" (option to purchase) on a property. My intention is to assign it to an end buyer which I already have lined up and have all the agreements needed to perform all this, BUT my prospect BUYER asked me today what happens after I assign the option to purchase agreement to him? Do I need a "sales contract" as well? If so, where can I get one? Or is the "Option To Purchase" Agreement is all he (buyer) will need to complete the entire transaction? (aside from the assignment of option agreement)...
Thanks for all your help TCI gurus
Ms Victory 
Your option should detail the terms of the 'sales contract" with the seller - or if you are questioning what you need between you and the buyer; you could draw a simple letter type contract between the 2 of you and assign your interests in the option to the end buyer. sign. notarize and take your money to the bank. then the buyer completes the sale with the seller according to the terms of the option.
Thanks feltman,
Yes I already do have an "Option To Purchase" (specifically for pure options) agreement with everything in order as to the whole sale, i was just wondering if I also needed a "sales contrac" along with that but sounds like I don't need one since I already have everything on the "option to purchase" agreement which is assignable and all.. hope that's all I need then but if I'm missing something else please share you'all
Thank You,
No one will give you money prior to the closing. Too many thing can and do go wrong.
I have never done an option, but .....
Get an option contract signed between you and the seller. The option contract will have to state the details of the closing. Find a sales contract, fill out all out except the sales amount, and the buyer. Attach that as addendeum A to the option contract.
Once you get a buyer, he signs a contract with the seller for the asking price plus your option fee. Obviously the house must appraise, it must pass inspection, and your buyer probably has to qualify for financing. So it would do you well to pre-qualify your potential buyers.
At the closing, you will have escrow instructions to put yourself on the sellers side of the HUD for your option fee.(Option contract with Seller should state that you will be paid out of closing and that he will sign escrow instruction to the closing agent.)
Brenda
Quote:
On 2004-07-30 16:32, bgrossnickle wrote:
No one will give you money prior to the closing. Too many thing can and do go wrong.
There is no closing until someone exercises the option, and a closing is arranged. Why would I give you my option so that you can execute it without me getting paid?
I think bg means that no astute investor would pay much for an assignment.