Understanding & Using Lease with Option to Purchase
4 CE (Education)
This course covers the general concept of Lease with Option to Purchase (LOP) along with discussion of the various laws that have potential impact and introduction to the use and understanding of the NMAR forms and several CCIM forms useful in LOP transactions.
Brokers apply and demonstrate understanding of the LOP issues by working through a case study with regard to the feasibility of an LOP for optionee and optionor.
Learning objectives:
- Define LOPs and describe advantages and disadvantages for using LOPs
- Explain the importance of federal tax laws impacting LOPs
- Be aware of NMAR forms applicable for use with LOPs
- Be aware of potential usefulness of "propriety forms" with LOPs
- Learn how tu use the CCIM "Annual Property Operating Data" as a first test of LOP feasibility for Optionor
- Write a LOP transaction from Listing Agreement, APOD, Purchase Agreement, LOP Documents, Rental Agreement, Property Management Agreement, Escrow Agreement etc.
- Understand the importance of managing risk by means of written and signed "indemnification"