QUESTION
residential real estate - purchase combined with lease
Asked on Sep 24th, 2014 on Residential Real Estate - New Jersey
More details to this question:
I own a house in Barnegat NJ and have a prospective buyer who can't close on the house for a year due to credit related issues. Can I create a purchase contract with the closing set a year from now and rent to them in the interim? Would that be two separate documents or one? I'm assuming they would put some money down now and an portion of their rent would go towards the downpayment. But I need to make sure all property upkeep is on them completely including supplies and labor as if they already owned the house. I will be moving out of state and won't be able to manage the property as if it's a straight rental. Is there a common form I can use to structure this agreement and/or can you recommend a good attorney to help draw this up properly and run the appropriate prospective tenant checks. Thank You. n1mu@netzero.com
1 ANSWER
2 Awards
You would need to have an agreement in place to take back a mortgage, and then use the rent in that fashion. You would want to have a mortgage note and record it as a lien agains the property so that you have a method to get the property back if they don't pay. You can also do a rental/lease purchase agreement and put in conditions such as upkeep. I don't think this is something you should try to draft on your own. An attorney would probably be able to do this for a relatively small fee, which may save you a big head ache in the future. Call my office if you need help.
Answered on Sep 25th, 2014 at 3:51 PM
Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship