This is one of those creative buying methods for a seller and a buyer of a home in Probate. Once the Petition for Probate has been filed and a Personal Representative has been appointed; they will have the authority to sell the property to you.
The lease option in general is when a written condition between two people agrees to let the buyer lock in a future price for the property. The buyer has the option to exercise at anytime during the stated period.
During the time limit if the lease option has not been used then he or she loses all rights to the property. These kinds of sells usually come up when the seller even in or out Probate can’t get the price they want. The following is how a lease option would workout between two people.
The Probate purchase advantages allow you to control real property (real estate) for 2, 4 or even 5 years with little of your own money. Then you can purchase the property at your previously agreed upon price point.
Exercising your option is what this is called. The advantage for the estate is that the Personal Representative can go ahead and start getting some money’s to settle the estate.
Understand this is an overview of a lease option for educational purposes only of this kind of contract. Your particular state will have its own peculiarities’ and you should seek a real estate attorney to look over your papers beforehand.
The items in a lease option is following.
The option is made up in writing.
Parties spell out who will pay for repairs, inspections and warranties when the purchase happens.
Parties use a lease option agreement with complete details included.
Parties have the transaction handled as a lease until parties are ready to use the option.
Parties combined transaction through a real estate attorney.
Parties agree on the terms of the lease, payments and allow some of the payments be applied to the down payment option is exercised.
Here’s an example if a $100,000 house goes up $25,000 in market value, you would have instant equity. Or if the market went down then you could walk away and just lose your lease payments.
By using this lease options you could actually control a lot of property with very little out of pocket expenses. Remember that if the Personal Representative isn’t getting the price they want then the lease option may be just what will get the OK!
The probate real estate market for the most part is an untapped market that will continue to climb as the worlds population continues to climb.
The houses out of probate can often be purchased at a deep discount with the contents included. Gary seen an opportunity and acted on it. He shares his findings at his blog so others can benefit as well!
By Brandon Fraser