Hello All:
I was asked today what is option consideration in relation to a lease option? Option consideration is the money you collect from a tenant buyer, usually 2%-5% of the agreed upon sales price, which is held outside of escrow, to secure the property. Option consideration is non-refundable and used against the remaining balance owed at closing. Many times proof of option consideration can be used when the tenant buyer decides to exercise their option and make application for financing!
For more information on lease options Click Here .
Until next time.
James Gage
