What Is The Relationship With A Lease Option Tenant?
I want to lease a property to a tenant with a lease option (two seprate contracts) in North Carolina. I was told I would need to file a foreclosure verus a normal eviction. My question is why? Does the relationship change when an option is offered? Is our relationship a tenant/landlord or a buyer/seller?
Depends upon how your state views the deal. If the state views a lease option arrangement as giving the tenant/buyer an equitable interest in the property, then you probably have to foreclose if your buyer defaults.
The real answer to your question will depend upon the structure of the deal itself rather than a generic one-size-fits-all answer.
Consult a local real estate attorney for specific guidance.
I live in North Carolina. I think NC is hard on lease options because the law makers here are considering some type of new bill to stop L/Os. What do you think?
They are CA entities.. thanks.