Upon Optionee exercising of this option, both parties agree to move forward with thenecessary standard purchase and sales agreement.6.

If they purchase, the option fee amount paid will be reduced from the purchase price to lower the purchase price on the sales agreement, after they exercise their option to purchase.* The property is not sold and title is not transferred until the tenant exercises the option to buy.

@Dale Walker @Chris Parrish  Basically a free training exercise for the dog, i don't see why they wouldn't unless it comes down to liability.

Of course when it comes time to exercise the option to purchase, then everything goes through the standard purchase process with title/escrow, notary, county clerk, etc...  

That lets you skip the whole exercise of saving before you can buy.Between price appreciation (at least here in MA) and rising interest rates, it's going to be hard to make any meaningful dent in your monthly mortgage payment with savings.

I call BS on that, because he wrote them a clear letter showing intent to vacate.Now I know it's not my problem, as the applicant signed his lease and sent me the security deposit.....However, I'd like to do him better and help him exercise his rights......Anybody know how to go about enforcing this??

I've been learning a lot and I think simple exercises like these will help me understanding the business better.

since the interpretation of the IRS is that a refi immediately before a sale is a taking of profit, and since you can show a paper trail that demonstrates you were simply exercising your normal business practice, reinvesting the re proceeds in other properties and not taking cash/profit out at any time - you've got  a good argument if ever questioned.  

If they purchase, the option fee amount paid will be reduced from the purchase price to lower the purchase price on the sales agreement, after they exercise their option to purchase.* The property is not sold and title is not transferred until the tenant exercises the option to buy.

The non-refundable lease option fee IS applied to the purchase if the optionee exercises the option.It looks as though your realtor friend proposed a seller-financed deal.