OfflineEvening all.
I found a cash buyer to assign to, but she asked me if an assignment is anything like(her exact words) an "Option to Purchase". I don't know what that is nor have I ever heard of it even after doing a DG.com search.
She said something about how it enables an investor to back out at any point during the deal so one of her clients attornies advised against it. (She's also an agent)
I'd really like to be able to get back to her asap but that Option to Purchase really threw me for a loop. And I don't know what to say. I'd like to ignore it but that wouldn't be very professional of me.
Any one know what an "Option to Purchase" could be or if it's anything like an Assignment?
__________________
If only I could remember I put a post up on the forums.
In an assignment you are assigning your rights to the property to your end buyer. In an option to purchase, you are optioning to purchase the property at some future date decided on by both parties. Options to purchase are mainly used with lease options commonly known as rent to own. When you are doing your assignment you are assigning the right to your purchase agreement.
I don't know if I am articulating this well. Hope it was helpful.
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
I am new at this game, but an "Option to purchase" is an agreement between buyer and seller. They agree on terms of the purchase of real property, but the buyer isn't ready to commit. So non-refundable money (deposit) is put down to hold that property for a predetermined length of time. If buyer doesn't exercise the option to buy within that time the deposit is forfeit.
On the other hand, you already had you purchase agreement accepted and now you are assigning the contract to a third party to complete. She needs to get her own real estate attorney and not listen to hearsay for clients. She will miss out on the deal you are providing
Good Verbage here. Couldn't be any better...Jan
Terrific info folks, thanks very much. I now feel confident enough to respond and move forward! If all goes well, I may complete my first deal.
If only I could remember I put a post up on the forums.