Unethical To Ask For Contract?
I am in a situation where I have an opportunity to take over a L/O agreement on assignment, for a fee of 5K for a 35K house. I asked the current "lessor" who wants to sell me the option if I could review the LO contract, and I think he was offended. Isn't that the appropriate thing to do since it will become my contract?????
It's my first L/O so I'm just not sure if I asked for something that was ethically inappropriate.
Thanks for your help!
You should absolutely look over any contracts that will become yours.
Lori
[addsig]
That;'s what I thought too, and I was surprised by his reluctance to share it with me.
Since we have been communicating over the phone I suggested a face-to-face meeting if he has concerns about faxing, etc....
Thanks for your response - by the way - I sent you a message
Never do a deal without doing all of your leg work first. Check to make sure the guy selling the property on a L/O has clean and legal tittle. Then look at the contract to see how much he paid in consideration, is there any credit towards the purchase price? What is the agree upon price. Is the L/O assignable?
Anyway you get the point don't give up the money just yet. Good Luck
If you're offering to buy, your offer should be contingent, in part, on your right to see & review ALL contracts on the RE prior to close...and if Seller won't show them to you, that's your cue to walk out.
NEVER buy anything without knowing all about it first.
There is no ethical issue here.
Pull the title report and see if the option is recorded. This will also tell you more about the actual owner.
You need to see all the docs as someone else has mentioned.
It is also helpful if you can figure out why the person is selling the option. There could be a clause that prevents such assignments so check.
What do you expect to do with the property? That might change your approach. If the person is not able to sell or exercise the option you can just approach the owner about starting a new agreement.
It is almost unethical for the seller of the option not to show you the contract. It is the contract you are buying!
John
Quote:
On 2004-03-10 10:13, tmpringle301 wrote:
It's my first L/O so I'm just not sure if I asked for something that was ethically inappropriate.
Thanks for your help!
The property is currently rented by a Section 8 tenant and there is a small positive cash flow.
Analysis of the property values in the area indicate that the price he wants to sell at (what he's saying is his option price) is approx 20K below market value.
It's in an area I believe will appreciate over the next few years so my objective is to buy and hold tow 2-3 years then sell for a profit.
Also - what is considered fair option consideration for a 35K house? He is asking for 5K and that sounds high to me.
Thanks all - for your input!