Hi,
As a landlord I am looking to establish a Lease Option (Rent to Own) on a property. The tenant has selected a house they wish to live in and the intention is to set-up the Lease Option and I will then purchase the property. The property is not ideal in terms of an investment property but fits the prospective tenants criteria. Therefore I do not wish to hold it in the event the Lease Option agreement is terminated.
Does anyone have any ideas about how to formalise commitment from a prospective tenant? Ie. In the event the tenant elects not to proceed with the lease after a short space of time and terminates the agreement.
I am wondering if anyone has experience with performance bonds products or similar products (maybe insurance) that have used been for this purpose.
Not much you can do really other than a sandwich lease. You buy an option on the property and then sell one to the tenant. That way if they don't take up the purchase you won't have to
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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