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Lease Option Questions- Protecting Title In L/O
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Posted by: 12figures
11/07/2003, 21:44:12

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Hi there,

I am an experienced investor, and I and looking at quite few more L/O deals, and I have a few questions in regards to protecting title to the Lease Option Property.

1. How do you protect the title from any Personal IRS Tax Liens during the time that you have the property lease optioned, if the seller fails to pay their personal income tax, the IRS will put liens on any property that this person's owns. Especially in the situation of a longer term deal where you have a 5-7 year option.

2. How do you protect the L/O Agreement if the Seller declares Bankruptcy? Will the courts liquidate the property(Seller's Assets)?

3. What happens if the Tenant Buyer declares Bankruptcy?
I think this is an easy answer to my third question but I would appreciate Clarification.

4. Would a Subject To Deal be better to protect title from the above questions?


Thanks for your Help,

Matthew


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