Posted by: happyardy
07/20/2005, 16:20:04
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Hello All,
I have started reading about L/Os and have a basic question.
As I understand, L/O are basically 2 contracts.
E.g
1) Contract to lease(say 2 years, Jan 10, 2006 to Jan 10, 2008)
2) Option to own, Say the term is 1 year. Does this term start as soon as the lease contract expires(Jan 10, 2008) ? Or does the term start 1 year before the lease contract expires( Jan 11, 2007)?If the 1st case is true(option term starts after lease contract expires), do we make a fresh 1 year lease(Jan 11, 2008 to Jan 11, 2009) till the tenant/buyer ponders over whether he wants to buy the house or not ?
If the 2nd case is true, I have some more questions but I will save them for later. Thanks in advance.
- Ardy
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