Lease/option can be profitable if you follow these important tips. Though leasing is fun, there are certain pitfalls that has to be taken care of and there are some legal tax tips that you should be aware of to protect your option.
Lets look at the three ways to protect your option:
1. If you have signed your option before a notary, you can record it in the public real estate records. If it was notarized, you can sign an affidavit and file it in the real estate records. This can only create a "cloud" on the title.
2. If your seller die or disappear suddenly, you might not get him to sign a deed. Instead you can create an escrow and hold an executed deed with a company or attorney. Once if you are ready to exercise, you can provide the money and collect the deed.
3. A mortgage should be recorded to secure the performance of agreement even if its a purchase. The buyer will now be a secured lender and if the seller refuse to sell the property, the buyer can foreclose and the seller has to go to the court to protect himself.
For more information visit: http://www.rementor.com/n-realestateinvesting.shtml
Lets look at the three ways to protect your option:
1. If you have signed your option before a notary, you can record it in the public real estate records. If it was notarized, you can sign an affidavit and file it in the real estate records. This can only create a "cloud" on the title.
2. If your seller die or disappear suddenly, you might not get him to sign a deed. Instead you can create an escrow and hold an executed deed with a company or attorney. Once if you are ready to exercise, you can provide the money and collect the deed.
3. A mortgage should be recorded to secure the performance of agreement even if its a purchase. The buyer will now be a secured lender and if the seller refuse to sell the property, the buyer can foreclose and the seller has to go to the court to protect himself.
For more information visit: http://www.rementor.com/n-realestateinvesting.shtml
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