Thread: Question about Double Lease Options

Originally Posted by Alan

HOW CAN I RESTRICT THE SELLER FROM CREATING MORE LIENS ON PROPERTY?

Why not enter into a LAND CONTRACT instead of a OPTION? That way the deed is tranferred to you, and therefore the original seller doesn't own the property, and therefore can't encumber it any more?

I'd look into that, if you can't get the seller just allow you to take over the debt subj-2.

Here is what my mottos are:

When Buying, I either do subj-2 or land contract.

When Selling, I only do options.

Maybe it is just me, but I want to be in total control over the property before I will want to get involved. Makes my life simpler.

Later!

Real estate laws are different depending on where you are.

In NC, when a land contract is recorded the deed remains in the sellers possession, so the seller retains ownership of the property until the debt is paid and the deed is recorded. The seller can encumber the property or even convey the title to someone else while they have a buyer paying on a land contract.

All states are different and in states like NC a buyer should never enter into a land contract deal. There is way too much risk.

WOW! That totally defeats the benfits of a land contract. I find that strange that you have a CONTRACT of SALE, yet the seller retains their rights, as if no contract was developed. Is there a structure that transferes title (other than a sale?) So a land contract is synonomus with a option in NC?

In WI, the title transfers, and then the seller would need to FC the buyer to regain title, if they defaulted (as it should be.)

Well, I will be sure to stay away from NC, if that is in fact the case!

Later!