Q on OPTION TO PURCHASE AGREEMENT

[serrow 0]

Hi folks, have a question on the OPTION TO PURCHASE AGREEMENT for a CA specifically.

 

here's what i know.

 

1C - full purchase price is listed here. This I believe will be the agreed upon price by the eventual T/B (rent credits and option consideration will bring this down to the seller's net price)

 

3 - option consideration to be listed here. i assume this is the option consideration that the eventual T/B would give to me.

 

now..... assuming that the first step in the CA process is to secure the seller a CA residential lease and this OPTION TO PURCHASE, how in the world would i fill out these fields with a final price, and option consideration without a known T/B? My mind works best when i can walk through a real life scenario.

 

hope my question makes sense... i tried good searching, but quoted searches do not always find the right postings. hope to get some great insite.

[MichaelC 160]

serrow, good questions. Shows the gears upstairs are whirring away. Let me take a stab at this. . .

 

1C - full purchase price is listed here. This I believe will be the agreed upon price by the eventual T/B (rent credits and option consideration will bring this down to the seller's net price)

Absolutely correct!

 

3 - option consideration to be listed here. i assume this is the option consideration that the eventual T/B would give to me.

No. Listed here is the amount of option consideration you pay the homeowner. Let's say you plunk down a heft buck. This is recorded here, and serves the purpose to make the option agreement legally binding.

This is then followed up with the CA Assignment of Agreement. It's on this doc where the option money received from the t/b is noted. Read it and I think it will become clearer.

[serrow 0]

whirring away for sure. If I do not keep motivated and keep it in the front of mind, I am always afraid this learned knowledge will go the way of a hobbie... so, trying my best.

 

Michael, you're killing my search abilities tho... normally in a forum, one reads the postings with 3, 4 ,10 replies. Your replies do such a good job wrapping up a topic that no one else needs to chime in. Lets just say there are A LOT of postings with only 1 reply. darn hard finding all the really hot topics - I'm complimenting you if you miss it. thanks for everything.

[MichaelC 160]

whirring away for sure. If I do not keep motivated and keep it in the front of mind, I am always afraid this learned knowledge will go the way of a hobbie... so, trying my best.

 

Michael, you're killing my search abilities tho... normally in a forum, one reads the postings with 3, 4 ,10 replies. Your replies do such a good job wrapping up a topic that no one else needs to chime in. Lets just say there are A LOT of postings with only 1 reply. darn hard finding all the really hot topics - I'm complimenting you if you miss it. thanks for everything.

That's because I charge members by the word. Didn't you read the agreement when you registered? It's .10 per. Check your Paypal account at the end of August.

[bpmiller2 0]

MC, when you get your T/B to sign the assignment agreement do you give them any type of receipt for their records or do you just consider their signed assignment agreement enough. Also, in your business, do you accept credit cards as a means of payment for option consideration.

[MichaelC 160]

Miller, everyone involved receives a set of the paperwork. That means three sets of the lease agreement, option to purchase agreement, and the assignment agreement. No need to write up an additional receipt of any kind.

No, I don't accept payment via credit card. Cash or cashiers check, only.