Who pays for What in a Lease to own contract?

Okay, so are you saying that, when you lease optioned from the seller everything was in shipshape and when you lease optioned it out to your tenant buyer all these things are wrong?
I am doing lease options right now, but not sandwich leases. If you were doing your due diligence on the prop before you signed your option to buy, you could negotiate with the seller for discounts for repairs, and you would have to fix them, but I would imagine that if you tried to option it out with major repairs needed you wouldn't get any takers. Or they would never excercise their buyout because they may not get a mortgage with such major repairs. The only time your tenant buyer would be responsible for something, is if it happened while they were in your home. I wasn't 100% sure what you were thinking with this scenario, so I hope I answered at least part of your questions.

Cathy

Thanks, Cathy. If I wasn't clear before, what I'm asking is- who would be responsible "after" inspections and contracts were signed? If I put an eventual buyer into a home on a 2 or 3 year lease, what happens when the furnace goes one year in, or there's a major roof problem 18 months in, etc? It's a question regarding problems that come up "after" contractual agreements are in place. Thanks for your reply!
-Tom

this information may not help, but the agreements can be drawn in any fashion that the parties are agreeable in signing. I have agreements where major stuff is the responsiblity of the leesor and I have also current agreements where the major stuff is handled by the tenant buyers. A lot of time it depends on the property and the condition it is in. In the final analysis, it become a judgment from experience.

I would check into getting a good home warranty. It's fairly inexpensive and it may cover most minor to major items. Also, you could negotiate up to a certain amount. Anything over that, you could pay, but they have to give receipts or something like that. I bet Karen could have something to add here, since she's very knowledgeable about L/O's.

Like most things this is not a yes no answer.
This is what we have in our contracts and it hasn't been the same any time.9.
MAINTENANCE: The Lessees shall pay for all repairs. Lessor will consider assistance with payment of repair totaling over $3000.00 if they are notified in writing prior to the repairs and with prior approval only. The lessee is taking possession of the property in “as is” condition.

Of coarse someone else may have something better but this has worked for us. So you have to decide what you want to help with. Most ove our are anything over 1000.00 we we pay half.

I hope this helps

Happy Investing

The lease options I have seen have a price point. Anything below the price point is paid by the buyer, and anything over is paid by the original sellers. Of coure the price point is negotiable.