Tax Assessment for Lease Option Property

[Kelvin Letron Brantley]

I'm looking to lease option properties.  In my state of South Carolina, there is a different tax rate for Owner-Occupant vs Investor.  My questions are:

1. If a seller agrees to L/O, are they required to go to the county and have the property assessed as an investment?

2. When entering into a L/O should I structure my Tenant-Buyer agreement to help cover the cost of the increase?

Thanks

[John Underwood]

If the person purchasing the home is living in the home then they can pay at the 4% rate.

They will need to show drivers license and car registration to prove the address matches.

Otherwise person who is buying the house will have to pay 6% rate.

I have used a land contract to sell/finance a property. I keep the property deeded to me, but the buyer can show the recorded land contract and if their DL and car registration matches they qualify for the 4% rate.

If person stops paying you may have to foreclose on property if they wont do a cash for keys or leave willingly.

If you have a lease and a separate option, then you might be able to do an eviction if the people don't show up to the magistrate with the separate option document.