Lease Option Contracts

In real estate we want to control our risks, either for ourselves, or if you are a real estate agent you want to control the risks for your buyers and sellers. The best way to control risks is by having contracts and clauses that offer protection for you and your buyers and sellers. Most contracts are pretty generic. If you are doing lease option deals, it's a very smart idea to have contracts or clauses that relate to lease options, in other words lease option contracts. I offer contracts (and relevant clauses) for both real estate agents and lease option investors.

We always hope that nothing will go wrong in a transaction but in the event something does, that's where you want the proper lease option contracts to cover your rear and protect either your home buyer or home seller. In many states now there is a required sales contract that real estate agents must use. If this is the case you can always add addendums to that contract to include the clauses that offer your home seller or home buyer protection in a lease option transaction.

Let me give you an example of a clause that you would want to have in a lease option contract or add as an addendum to a generic contract that would give a home seller additional protection in a lease option transaction:

Default

"In the event of default by Purchaser, Seller may, at his option, declare a forfeiture thereunder and retain the deposit. In the event of default by Seller, Purchaser may, at his option, demand, and be entitle to, an immediate refund of his entire option deposit in full termination of this Agreement."

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