Quote:
Originally Posted by MrMaxwell
Hmm...
Dumbfuck and moron have a purchase contract between them
Moron and fuckface have a second purchase contract between themselves
So at closing here you have fuckface paying his $1200 and then you have dumbfuck collecting his $1000 and moron collects his $200
OR
You're saying that it can work this wayż
Moron sells his purchase contract to fuckface for $200 and moron walks away and then it's just dumbfuck and fuckface going to the closing where fuckface pays dumbfuck $1000 for shithole
right?
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Party 1 homeowner (or instrument holder {aka 2nd mortgage lender})
Party 2 purchase option holder
Party 3 option buyer
homeowner grants the purchase option to Party 2 for some agreed upon consideration (payment in money or in kind [crack, meth other unlawful substances excluded*]).
Party 3 buys Party 2's Option contract for some agreed value.
Party 3 then exercises the option and buys the property rights from Party 1 at the purchase price agreed in the assigned option.
The transfer of the option
can be, not advisable if the parties are unknown, outside and before a purchase escrow is opened for the property. The option sale (assignment) may also be done within the escrow opened for the property sale. Muti-party escrows are recommended. Escrow instructions can be for any legal purpose.
My CFL license allowed me to do an escrow for a transaction where I was principal. Same as a real estate broker can do an escrow -- they usually don't for reason of conflicts of interest.
Generally speaking, and check your local laws, you are acting as a principal in a options contract, possibly limited to so many transactions per year, as not to be acting as a broker under your local laws.
So, I would get the option buyers funds then assign the option to the buyer myself upon taking a payment amount above the option money I paid the property(or instrument) owner (holder).
I made my markup and the Party 3^ Assignee and the owner of the TD instrument went to escrow or handled it themselves -- I was out of the picture.