Hello people
looking to do lease options in the next few weeks and I need to know more about the legal side of things from both parties what are the best clauses to stipulate in the contract to make sure im covered well can I stipulate that the buyer isn’t allowed to use the property as collateral against any lending that he wants .
Also if interest rates go up does his /her go up as well are the allowed to rent out the property .And if there is any good tips out there on lease options clauses please forward them on
thanks
The borrower cannot use your property as collateral as they will not own it untill they purchase it. They will be merely leasing hte property from you.
You could put in a clause that the tenant’s rent will be reviewed quarterly and moved up in line with any interest rate increase and/or any CPI increase. Also stipulate that it cannot go down.
You can also put a clause that they cannot sublease the property without your permission.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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