Question: With regards to equitable interest, what happens if you sell your house on a lease option or maybe a rent to own. And, the house is in okay shape, but you're selling to a contractor who you anticipate will make improvements to the property which he/she does in fact make those improvements. But, later on down the road they default for whatever reason. Do they have equitable interest in the property for those improvements made? Because, that can be quantified.
Very good question. My agreements specifically address whether improvements can be made, under what conditions, and whether they entitle the buyer to any equity in the case of a default. However, I'm sure it's arguable in court, no matter what you agree to in writing. But good docs should make it plain what the intents of the parties was rather than leaving it open to unfounded debate.
@@CalebChristopherHimself so maybe flat out saying, in your documents, something to the effect of, "If you fix up the property and default on our agreement than you forfeit any sort of equitable interest you may have had in the property."?
Question: With regards to equitable interest, what happens if you sell your house on a lease option or maybe a rent to own. And, the house is in okay shape, but you're selling to a contractor who you anticipate will make improvements to the property which he/she does in fact make those improvements. But, later on down the road they default for whatever reason. Do they have equitable interest in the property for those improvements made? Because, that can be quantified.
Very good question. My agreements specifically address whether improvements can be made, under what conditions, and whether they entitle the buyer to any equity in the case of a default. However, I'm sure it's arguable in court, no matter what you agree to in writing. But good docs should make it plain what the intents of the parties was rather than leaving it open to unfounded debate.
@@CalebChristopherHimself so maybe flat out saying, in your documents, something to the effect of, "If you fix up the property and default on our agreement than you forfeit any sort of equitable interest you may have had in the property."?