"Pure" Option

[<Steve> 82]

Hello-

 

I currently have a seller from a referral on recent CA and a buyer who wants the property. I need to bring them together to make this deal and thought a Pure Option from the manual may be the way to do it?

 

I haven't completed a Pure Option, so I assume that I enter into an Option Agreement with the seller with no lease and no monthly payments going to the seller and take possession of the property for specific amount of time. And then assign my option over to the buyer who purchases the property from the seller. And of course collect my option consideration.

 

 

Is this it in a nut shell?

 

Thanks for any input.

<Steve>

[<Steve> 82]

OK-

 

Sometimes it helps to look at the manual. Page 26 explains it and I answered my question. Any comments are welcome however.

[MichaelC 160]

Is this it in a nut shell?

Why, yes. Yes, it is.

Complete the Pure Option Agreement between yourself and the homeowner. Price and length of option period are negotiated and agreed upon. Find your buyer. Note I said buyer, not tenant/buyer. There is no lease agreement with this type of deal. Once you do, you have two exit strategies. If the spread is significant enough to make the time and potential hassle worth it, arrange to exercise your option with the homeowner and then sell the house to your buyer simultaneously. In other words, a double close.

Or, if you want some fast cash, simply assign your option to your buyer for an assignment fee, and be done with the deal. This would require the Assignment of Agreement document, signed by all three parties.

[<Steve> 82]

Thanks Michael-

 

I am meeting the seller tomorrow and we will sign the Option to Purchase Agreement; I will be showing this porperty mid week to the buyer who wants to buy. The spread is thin, so I think I will assign for some quick cash.

 

This buyer wanted another property I had and that was assigned to someone else last week. This deal just fell in my lap from a referral. You gotta love it!