Lease Purchase Option

[Anthony Jenkins]

Hello all!

I am new to BP so please be patient with me lol.  I am attempting to do my first deal and need a little advice. My friends aunt passed and left her as the executrix and owner of her home in philadelphia. Although it says as much in the will, my friends name is not on the deed. She has agreed to do a seller financed lease option with me but not sure how to proceed. In addition, she recently took the home off the market because she's agreed to sell with me but in her contract with the Realator he get a % if the house is sold within a year. Not sure what to do. 

Thanks in advance.

[Ethan Giller]

It will be much easier for you if you just have an agreement of sale to buy the property (such that the deed transfers to your name), with your friend holding the balance of the mortgage note, which is recorded as a lien against the property.  The title company you use at closing will know what to do to probate the will prior to closing, so that you don't run into issues with getting a clear title.  This way the agent gets paid too.

In my opinion, if you try to do a lease purchase option in this type of situation and you and/or the seller is not experienced, you are more likely to run into issues with the title, estate taxes, the agent, etc. I'm assuming that you are keeping this property as a rental. If you're trying to flip it, you should consider just setting up a JV with your friend. Either way, don't put any money into it until you are sure the title is marketable.