If you have an option to buy a house for less than it is worth, get a lwyer to make sure you exercise it correctly so you do not lose your equity.
Posted by John T. Reed on
A reader just told me he has a lease option that expires tomorrow and he has a great bargain price. The seller says he will renege. That is ILLEGAL. It is also irrelevant.
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HOWEVER, the lessee/optionee must exercise the option by tendering the money. I told him to get a lawyer TODAY and make sure he exercises the option according to its terms before the deadline which he said was 5/31/21.
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If you do not tender the money because the guy said he would renege, he wins. You have to ignore his words and tender the money.
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Did this guy wait way to long to ask me about this? Yep.
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Lease-options have been popular with rental-house landlords for years. I have a book about it. With the market on fire now, this situation—too low of an option price from the seller’s standpoint—is probably common. Tough. But if you do not dot your i’s on tendering the option price, you lose your “in the money” option.
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The meek may inherit the earth, but they will not get the mineral rights or the “in the money” options.
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