Lease Option Paragraph 3 Replacement

15 Responses to Lease Option Paragraph 3 Replacement

1. Shay Lance says:

   May 8, 2015 at 3:34 pm

   This form is confusing to me when doing a sandwich L/O. I’m staying in the deal so why would I have the Landlord/Seller install a TB. I understand this with the ACTS because we get the seller to approve the TB. Does Ron advise we get Seller approval of TB’s with Sandwich L/O’s?

   Reply
2. Michael Campbell says:

   June 20, 2015 at 8:11 am

   Yeah I don’t get this either. In the “pretty house cash flow” course manual, the example of this replacement that’s given says ” after LEASEE installs tenant buyer”.

   Reply
3. Andrew Purnell says:

   June 22, 2015 at 2:35 pm

   Bump for explanation

   Reply
4. Elliot Land says:

   June 23, 2015 at 9:05 am

   Hey guys!

   There was a mistake, and it has been corrected. Please see the new form above.

   Reply
5. Rolondo Baker says:

   July 14, 2015 at 11:04 am

   I don’t see where to replace this language because paragraph 3 is about POSSESSION AND OCCUPANCY. Please clarify or can you put up the whole agreement with this language already in it. thanks.

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   • Elliot Land says:

     July 14, 2015 at 11:44 am

     Hi Rolando,

     Ron talks about when to use this replacement paragraph in an Ask Ron video, which you can find here. To get straight to the replacement paragraph, jump to 11 minutes into the video for the question from Katrina.

     https://www.ronsgoldclub.com/resources/ask-ron-2015-04-03

     If you still have a question about it, submit it to the forums so Ron can answer it in another video.

     Reply
     • Jarret Byrd says:

       August 3, 2020 at 8:25 pm

       Thanks Elliot! This replacement has been very helpful to our business.

       Reply
6. Josh Craig says:

   August 14, 2015 at 1:02 am

   Hello,
   I understand the first half of the replacement paragraph (3)but the 2nd half is confusing especially if the exit strategy is not staying in the deal. I thought because of Dodd Frank, we no longer put a certain portion of the monthly payment as rent credit towards paying down on the purchase price.( or applied towards the purchase price). Please clarify

   Reply
7. Andrew Ned says:

   January 26, 2017 at 10:31 pm

   Folks,

   It looks like that here is the issue with this paragraph replacement.
   Replacement text states:

   “30 days after Leasee installs a tenant buyer in the home”

   1. Term ‘Lesee’ is not defined in Lease agreement anywhere.
   2. “Leasee installs tenant buyer”, BUT we actually are this Tenant/Buyer based on this Lease agreement definitions.
   Therefore, if we just blindly replace paragraph 3, then it reads that some Leasee install us… !?

   I believe that this replacement clause should be adjusted to avoid possible misinterpretation in courts.

   Reply
   • Jermon Clayborn says:

     March 3, 2017 at 12:27 pm

     You should contact Ron’s office to let them know…

     Reply
8. Mark Burton says:

   April 2, 2017 at 11:46 am

   My rewrite is clunky but it works. Of course you’ll want to substitute your correct LLC name in place of the fake “ABC,LLC” used as an example here.
   ——————–
   RENT: ABC, LLC agrees to pay to the Landlord/Seller the sum of $__________ per month with the first payment beginning 30 days after ABC, LLC installs its own tenant/buyer in the home and on the tenth of every month thereafter. If the first payment has not been made within 90 days, this agreement will become null and void unless jointly extended by the Landlord/Seller and ABC, LLC. An amount equal to $__________ for each month in which rent was paid, shall be credited to ABC, LLC and applied to the purchase price of the property in the event that ABC, LLC exercises its option hereunder; otherwise, this credit shall be non-refundable and considered forfeited if the option is not exercised.

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9. Tommy Hoang says:

   May 31, 2017 at 3:57 pm

   This is for the Short Form Lease Option Agreement with Sellers. Don’t confuse this with the long form with Buyers. We don’t buy like we sell.

   Reply
10. Brian Benedict says:

    May 22, 2021 at 8:48 am

    This is a great option. It gives you time to find a tenant buyer and if you don’t then the agreement is Null and Void. A true no harm no fowl language.

    Reply
11. Bella Chartrand says:

    June 2, 2021 at 6:20 pm

    Thank you, Ron. I love how you cover all your bases.

    Reply
12. Tom Devoe says:

    November 18, 2022 at 11:17 pm

    11/18/2022 – Hey ALL! Has this information been updated yet?

    Reply