Florida lease option contract?

[Paul Springer]

Hey BP,

I hear mixed reviews on doing lease option or subject to deals.

I am hoping some one can finally nail this down for me and explain the correct way to structure a lease option contract (subject to the existing loan).

This is in regards to deals in the state of Florida.

Thank you in advance and I really appreciate any advice. 

[Laura Richards]

A lease option contract consists of multiple agreements. First there is the lease. The buyer is nothing more than a glorified tenant until such time as he or she fulfills all obligations under the option. Hence the need the for an option agreement which states the terms that must be satisfied in order for buyer to purchase the property ( payments of $X every month for a term of Xmo/yrs with final purchase price being X). A notice of option may also be recorded in public records.  Disclosures are also key in proper construction of lease options. 

A subject to deal can be structured by using the ever popular FarBar contract and specifying the subject to structure of the deal in the financing options section. A FarBar can be found with a simple google search and/or the Florida realtors website.