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suburbantim

About to sign up my first seller

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I'm about to sign up my first seller on a CA. Should I fill out and email the CA Residential Lease Agreement and the Option to Purchase Agreement?

 

For the CA Residential Lease Agreement:

 

1. I want the Lease to begin when I find a t/b. What do I enter under the beginning and ending dates?

 

2. What do I enter under "Occupants"?

 

3. The CA Residential Lease says "Tenants may not sublet the premises...". Since I intend to sublet, how do I handle that?

 

For the Option to Purchase:

 

1. What would I enter under the "option period" if I want it to begin when I find a t/b?

 

2. The purchase price would be what I agreed to pay the seller, and not what I'm marking it up to include my option fee?

 

3. The "option consideration" would just be what I'm giving the seller, and not what I'm collecting as my profit from the t/b? What date should I put, since I want to pay that when the t/b pays it to me?

 

4. Item 5 says the agreement "...the agreement cannot be assigned...". How do I get around that?

 

Sorry about all the detailed questions, but my manual has not arrived yet and I don't want that to be my excuse for not "TAKING ACTION!".

 

Thanks for you help.

 

Tim

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1. I want the Lease to begin when I find a t/b. What do I enter under the beginning and ending dates?
The lease is typically 12 months. The start date needs to be determined by you based on your local rental market and the appeal of the property and the terms you are offering. Be realistic and give yourself enough time to find a t/b. If something happens sooner, the homeowner won't be upset, believe me.

 

2. What do I enter under "Occupants"?
Leave it blank until you know who is moving in.

 

3. The CA Residential Lease says "Tenants may not sublet the premises...". Since I intend to sublet, how do I handle that?
The CA Assignment Agreement gives you the necessary permission to assign the deal. (PS: if this is a CA you are not subletting, you're assigning the deal. That's a noteworthy difference).

 

1. What would I enter under the "option period" if I want it to begin when I find a t/b?
The option time frame will coincide with the lease agreement.

 

2. The purchase price would be what I agreed to pay the seller, and not what I'm marking it up to include my option fee?
Incorrect, Tim. The purchase price on the Option to Purchase Agreement should be the full retail price that you will be marketing the price for to tenant/buyers. That is, the homeowner's net price, plus the assignment fee, plus the rent credits.

 

3. The "option consideration" would just be what I'm giving the seller, and not what I'm collecting as my profit from the t/b? What date should I put, since I want to pay that when the t/b pays it to me?
This refers to the option consideration that you are paying the homeowner at the time you are getting the deal signed. Typically, $1 or $5 to make the option legally binding.

 

4. Item 5 says the agreement "...the agreement cannot be assigned...". How do I get around that?
See 3 above.

 

Sorry about all the detailed questions, but my manual has not arrived yet and I don't want that to be my excuse for not "TAKING ACTION!".
Happy to help, Tim. Keep moving forward. ;)

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