Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Wholesaling
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 10 years ago,

User Stats

145
Posts
71
Votes
Scott Schuetz
  • Real Estate Broker
  • Indialantic, FL
71
Votes |
145
Posts

Can anyone help with this option contract?

Scott Schuetz
  • Real Estate Broker
  • Indialantic, FL
Posted

So my mother is selling a home out of state to a wholesaler. I'm very new to lease option contracts. The contract has this verbiage:

CONTRACT FOR PURCHASE & SALE OF REAL PROPERTY. In the event that the

Purchaser exercises its Option as provided for in the preceding paragraph, Seller agrees to sell

and Purchaser agrees to buy the Premises and both parties agree to execute a contract for such

purchase and sale of the Premises in accordance with the following terms and conditions:

(a) Purchase Price. The purchase price for the Premises shall be the sum of $14,000.00

cash or financed price of $17,000 with a lease payment of $700/month

with $6,000 down. Payment will be due by the 1st of the month

every month with a late fee of 10% after the 5th of every

month if lease payment has not been paid. Buyer is

responsible for paying taxes yearly and maintaining home

owners insurance. Seller is responsible for property taxes

prior to closing.

Can someone explain the lease? Is this giving the wholesaler the option to lease the home? who gets the $6k and the $700 month?

Thanks in advance for your help

Loading replies...