LandInvestors.com Forums **Ask A Question** Marketing with an option agreement

  • Creator
    Topic
  • #18432

    David Shertzer
    Participant
    Post count: 2

    Hi everyone
    Working on our first deal. We have an option agreement signed for 17 infill lots. When I’m marketing the properties do I need to have in the listing that I do not own it yet? We are planning on doing a double closing when we find buyers. One more question would you make 17 different listings or just one stating we have multiple lot for sale.

    Thank you in advance.

Viewing 2 replies - 1 through 2 (of 2 total)
  • Author
    Replies
  • Joe Schmitt
    Participant
    Post count: 122
    Pro

    I am closing on a property bought with an option tomorrow. I never tell people. It just confuses them. IMHO – an option gives you equitable interest, so you can market the property as if you own it. Others may disagree. When I draw up the contract, I simply explain the assignment fee as “The seller and I are splitting the proceeds”.

    joe@hyhproperties.com

    Anwar Montgomery
    Participant
    Post count: 97
    Pro

    I disclose I am assigning my interest in the property. I put that at the bottom of the listing, “I have an equitable interest in the property and I am assigning my interest”. I go on the side of caution with this topic. It’s a grey area and you do not want to confuse yourself with a realtor/representing the property when you’re not licensed or the owner of record. All it takes it one time and one person to complain, and then you’re dealing with attorney generals office. Trust me, I’ve been there and been fined.

    As for the buyer, If/when they get ask, I explain that I have the property under contract to purchase at a certain price. I have the first right to refusal. I am assigning my contract to you. You are buying it at the agreed upon price. It will get deeded to you. If they want to buy it, they will buy it. I don’t use the word option. That’s more of the lingo we use in our community. That will confuse them.

Viewing 2 replies - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.