A Contract For Option is better than giving an Option - avoids equitable interest

[Brian Gibbons]

I am re-starting a discussion.

Does a Lease Option create a due on sale clause issue?
Can equitable interest be avoided?
Is there an alternative to a Lease with Option?

I have communicated with Bill Gulley with this.

I suggest the idea to BP forums that a Contract for Option to Purchase (CFO) avoids equitable interest and does not trigger the due on sale clause when coupled with a residential lease.

My complete BP blog post is here...http://www.biggerpockets.com/blogs/3/blog_posts/26565-a-contract-for-option-is-better-than-a-lease-option

But to pose the question to the thoughtful and experienced on seller financing, which include wraps - aitds, cfds, seller carrys and such, what is your opinion? Does it avoid equitable interest and the due on sale?

Please post on this thread.

I look forward to all responses!

Brian