What are the shortcomings?
There are only a few minor drawbacks, but you should be aware of them, nonetheless. The first (if you are the landlord/seller) is an “equitable title” claim by your tenant/buyer. Any good Lease 2 Purchase course will teach you how to minimize your risk regarding this claim. The second (if you are the tenant/buyer) is protecting your option. What if your landlord/seller disappears, dies, or decideds they don’t want to sell? Again, any good Lease 2 Purchase course will teach you how to protect your option. The third is the infamous Due-On-Sale Clause. The Due-On-Sale clause is a non-issue. Here’s why… There isn’t a single lender on the face of the earth that is going to enforce their Due-On-Sale rights on a mortgage that is performing (being paid on time). Why? Because lenders are in business to make money. If they enforce their DOS clause, they are essentially taking back possession of a property in order to sell it, more than likely for a huge loss. Furthermore, lenders will only enf
