The loan may contain a provision that calls for an acceleration of the loan payoff in the event of a lease option. Include a provision in the lease option that if the buyer does not purchase the property they forfeit the lease deposit as well as the option fee. Add a clause that the buyer makes monthly lease payments that equal or exceed your PITI payment.
You might decide to include a provision that you credit the buyer with a portion of the monthly lease payment toward the purchase price. We revisit the property we talked about earlier in this chapter where we said the option fee applied to the purchase price. We made an offer on a five-bedroom, four-bathroom, 5,000-square-foot single-family home in a great neighborhood. Our offer was in the form of an option contract with a six-month option period.
We negotiated the option fee to apply toward the purchase price if we exercised the option. If we did not, the seller would keep the option fee, which was $2,500. The seller accepted our contract. What do you think we did with this property?