You could accept or buy me out for $400,000.Be sure to involve an attorney as I am not one and the above is no legal advice.

However full disclosure to original seller would be required.Please understand that as the holder of an option you do not hold legal, and probably not even equitable title to the property.

Which means if you referred someone to a property and they did not pay you the fee they promised to pay you, you would have no legal recourse.http://www.biggerpockets.com/forums/51/topics/65558-selling-homes-without-a-license-is-a-3rd-degree-felonyHere is an article from BP letting us know that this is a felony in Florida.

1) offer2) acceptance3) considerationA legal & enforceable agreement to transfer ownership .

Setting up LLCs can get be expensive and create a lot of paperwork - each LLC files it's own taxes, etc.If you can't find what you're looking for here on BP, Nolo has a book "Every Lanlord's Legal Guide" that would be a good start.

Trey your on the right track but you should be able to reap the benefits and limit your liability as well.In CA, we have this form below that basically tells a seller that you are not representing them and they should seek legal,tax,etc. counsel if they need it.http://www.wrightrealtors.com/pdf/non_agency.pdfThe good thing about TX, is that the laws are much different and the disclosure requirements are much less.

The success rate of this plan would flirt with zero if not be negative for it's legal issues that could arise.Wendell, you have misconceptions over what this all means too it seems, unfortunately.

Is it legal for them to sell that far below market value?

What is the minimum legal notice I can give her to get the hell out of my house while still keeping her last month's rent?

We do not have any legal docs explaining this arrangement, everything is in my name except for our bank account, is that okay?