Mack

The homeowner recently purchased another house to live in and has a fifteen year note with a payment of approximately $600. He's trying to have the monthly payment from the T/B cover the payment on his primary residence. I told him that the buyer would probably cash him out before the fifteen years is up and he is OK with that, but is insistent on doing it this way. He told me that they have already agreed to terms and money has exchanged hands - he just wants to get it on paper.

Thanks Michael for the welcome and the advice. I have been following your forum from afar since late last year and have found it to be one of the best around. Most of the time I can find the answers to my questions just by searching the archives. After I posted my query with you, I contacted an attorney and his advice corroborated your opinion. So, I think my friend should give the T/B a three year lease and an option to request (in writing) an additional three year extension. This option may exercised a total of four times. What do you think of this plan? Anyone and everyone's opinion is welcome.

Does anyone know if a lease term of fifteen years is legal (specifically in Oklahoma)? A person I know wants to sell their house (owned free and clear) using lease/option for $65000, $3000 option money, $600/month with $345/month rent credit for 180 months or until T/B exercises option. Tenant/buyer has already agreed to these terms and is OK with the consequences.