Is an owner occupied, short term lease, with a secured deposit on a option sale agreement too much to ask for?

Looking to buy a small office building,... ideally one of the home office conversions that dot downtown FLL... Ive seen many, but to best manage the transition with ease, given the banking conditions... is a lease option , for a short term, in an effort to escrow additional deposit money , secured by a non refundable deposit upon execution of lease, too much to hope for?
In Buying Property - Asked by sr l. - May 26, 2009
Report Abuse
Answer this Question

Answer(s)

Paul S.
Broker/Agent
Glendora, CA

All you need is a seller that is willing to do the transaction. Remember that in order to have an option you need some option money. The non-refundable deposit you mentioned would no doubt be the option money? Options are hard to find so don't expect it to be easy. Most options benefit the buyer not the seller, not that it is impossible to structure an option that has benefit to the seller. Good luck.

May 27, 2009
Report Abuse
Jim C.
Broker/Agent
Placerville, CA

No, this isn't at all too much to ask for. Many such deals are done here in California using 1% to 5% of the agreed upon purchase price as a non-refundable "option fee." You'll also need to define whether or not the option fee, and any lease payments, will apply in whole, or in part, to the ultimate purchase price.
Just make sure you have all the conditions spelled out in the Lease-Option Agreement AND the Purchase Agreement.

May 27, 2009
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question