|
Craig
Warner Properties Inc
|
When is the lease Option put into a trust
Sunday, November 09 2008 07:11 AM
When doing a Lease Option when is this converted into a Land Trust? Reason why I am asking, doesn't the Lease Option open the doors for a lawsuit to any party involved in the contract? Therefore wouldn't one want to but this into a trust ASAP?
My partner perfers doing a land trust from the start because the less legal risk involved vs a Lease Option risk. On the other hand I have a very hard time selling the idea of the Land Trust because they give up the name on the deed.
The two edge sword.
Craig Warner
Warner Properties Inc.
REPLY
|
|
Randy Hughes
Land Trust Expert-40+ years of experience
|
Re:When is the lease Option put into a trust
Saturday, November 15 2008 04:53 PM
Craig,
See my comments in BOLD below.
Randy
When doing a Lease Option when is this converted into a Land Trust? Reason why I am asking, doesn't the Lease Option open the doors for a lawsuit to any party involved in the contract? Therefore wouldn't one want to but this into a trust ASAP? YES, YOU ARE RIGHT. YOU IDEALLY WANT THE SELLER TO PUT THE PROPERTY INTO A LAND TRUST IMMEDIATELY AND THEN YOU RECORD YOUR OPTION WITH THE TRUSTEE TO PROTECT YOUR INTERESTS.
My partner perfers doing a land trust from the start because the less legal risk involved vs a Lease Option risk. On the other hand I have a very hard time selling the idea of the Land Trust because they give up the name on the deed. I UNDERSTAND YOUR FRUSTRATION. IT DOES TAKE SOME EDUCATING TO GET THE SELLER TO COMPLY. START BY TELLING THE SELLER, "LOOK, BOB, I DON'T KNOW YOU AND YOU DON'T KNOW ME SO, TO PROTECT BOTH OF OUR INTERESTS LET'S PUT THE PROPERTY INTO A LAND TRUST (WITH YOU AS BENEFICIARY) AND THEN STRUCTURE OUR OPTION AGREEMENT AROUND THE LAND TRUST."
WHETHER YOU USE A LAND TRUST OR NOT, BE SURE TO RECORD YOUR OPTION AND A MORTGAGE TO PROTECT YOUR OPTION INTEREST FOR A REAL BELT AND SUSPENDERS APPROACH TO OPTIONS.
Randy Hughes
866-696-7347
REPLY
|
|
Craig
Warner Properties Inc
|
Re:Re:When is the lease Option put into a trust
Wednesday, June 08 2011 11:28 AM
Thanks for your response. I have another question as a follow up to your original answer below.
"WHETHER YOU USE A LAND TRUST OR NOT, BE SURE TO RECORD YOUR OPTION AND A MORTGAGE TO PROTECT YOUR OPTION INTEREST FOR A REAL BELT AND SUSPENDERS APPROACH TO OPTIONS.
Randy Hughes
I understand your recording the option but please explain the the Mortgage end of the statement above. My partner always makes sure a separate bank account is used for each property to protect any due on sale clause. Is this what your refering to?
Craig
Craig Warner
Warner Properties Inc.
REPLY
|
|
Randy Hughes
Land Trust Expert-40+ years of experience
|
Re:Re:Re:When is the lease Option put into a trust
Wednesday, June 08 2011 12:04 PM
Craig,
SEE MY COMMENTS IN BOLD BELOW.
I understand your recording the option but please explain the the Mortgage end of the statement above. My partner always makes sure a separate bank account is used for each property to protect any due on sale clause. Is this what your refering to?
THE MORTGAGE GIVES YOU MORE SECURITY. FOR EXAMPLE, AN OPTION CAN BE DESTROYED BY BANKRUPTCY OF THE CURRENT OWNER (EVEN THO YOU HAVE RECORDED YOUR OPTION). THE MORTGAGE WOULD BE ADDITIONAL SECURITY FOR YOUR OPTION AND YOU SHOULD RECORD IT FOR WHAT YOU ESTIMATE THE VALUE OF THE OPTION IS...TO YOU!
Randy Hughes
866-696-7347
REPLY
|
