Rent with option to buy

[Patricia Gemming]

We have a co- op which we inherited when my father-in-law passed away. We have someone who wants to rent with an option to buy after one year. We were only asking for a security deposit and $1800./mo rent. Do we have to put any of the rent towards the buy? Does the person have to give us any money separately towards the buy when they sign a contract? thanks for your help.

[Brian Gibbons]

I've got several students in the state New York and I used to live in Westchester County

Do not use an option contract

Use a lease and sale and purchase agreement

Qualified buyer by filling out a 1003 app and getting him-her t o aregistered mortgage loan originator

Draft escrow instructions

Standard 12 month lease in New York

Standard sale and purchase agreement with 3% nonrefundable earnest money

Date of occupancy is 12 months in the future

If tenant lessee fails to perform and get a mortgage by xxx date, the 3% is nonrefundable

See an attorney

Do not listen to real estate agents about lease purchase