straight options

[kimesha]

when you put a house under contract using straight options do you NEED a purchase contract too or can you just use your option and record it and then sell your option? :smiley8:

[Dan Auito]

when you put a house under contract using straight options do you NEED a purchase contract too or can you just use your option and record it and then sell your option? :smiley8:

Kimesha, a better way would be to use a standard purchase agreement/contract and add the words or assigns behind your name as buyer.

Then sign an option agreement seperately with the new buyer have it notorized and allow them to close the deal. If the buyer wants assurance that they will indeed get the property then ensure you record the option agreement so the title company can cut the check and satisfy your agreed upon option amount at the closing.

That's the way I see it!

Update, Attorney Dave Whisnant agrees and added the caveat; I would add in that you want to cross out and initial the anti-assignment provision in the contract, if any.

[kimesha]

if i use a PA and used and/or assigns am i not still obligated to buy the house if i do not fund a buyer. what if my buyer decides not to exercise his/her option?

[Dan Auito]

You could find another buyer, buy it yourself and sell, rent or lease w/option later, worst case would be to forfeit the earnest money and walk away! Better to have a contingency in there that would protect you from such events or the phrase earnest money to be deposited upon closing! If it never closes then they should return it!

Some people will try and use promissory notes as well for the earnest money, with similar language so they don't fight with the title company on refunding the cleared but not dispersed funds.