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Updated over 10 years ago,
Can anyone help with this option contract?
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