The option amount is "the principle amount of loan #_______ at the time option is exercised."

We have every intention on living in the house, and exercising the lease (hopefully 2 years) and completing the purchase.

If you are like me and hold longer, some properties I've kept for over 20 years, it becomes a more interesting exercise.

If they exercise the option, and only one of them ends up completing the purchase that's their prerogative and their problem to sort out between themselves.

Plus you are actually getting exercise on the job which is a big bonus.

Another exercise would be the same as thinking of the trust as a whole different person.

A buyer exercises the right to buy the property at today's price.

That money does typically convert to the down payment if you choose to exercise the option and buy.  

I mean ever.Yes or no, not maybes.The letter of intent basically says,Name of owners, property name, today's date, name of prospective purchaser, name of purchaser's company, intention to purchase on these terms as a principal.Purchase priceif lease with option, market rent, 12 month term with extensions, exercise price, etc.If subject to, purchase price, date of possession, date first payment, date of walk through, etc.If wraparound mortgage AITD, purchase price, note payment, interest rate, etc.

Trying to exercise my brain cells!