Legal Question in Real Estate Law in Georgia

Are 'sandwich lease options' legal?
I have heard a lot about this. Basically you find a property with some equity, enter into a ''lease with option to purchase'' agreement that also gives you the right to sublet the property.

Then you find a tenant who would like to rent to own. You give them a separate lease agreement and a separate purchase & sale agreement. They have 12 months to buy.

When it comes time to close, you do a simultaneous closing, where you purchase the property and then immediately resell.

Or I have heard where you assign your agreement for an assignment fee.

Or even where you agree to release the seller (the owners) from the lease with option to purchase agreement for a fee, so that they can sell directly to the tenant/buyers.

Now without saying ''you have way too many issues to discuss....''

In a nut shell, is this legal? Could it be done legally?

Or is this acting as a real estate broker without a license?

Asked on 7/23/07, 1:26 am

2 Answers from Attorneys

Robert Thompson J. Robert Thompson Attorney

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Re: Are 'sandwich lease options' legal?

They are "legal" in the sense that, done properly, no laws are violated. However, many of these schemes involve ignoring the contract rights of the owner, and are therefore very risky. You will require the services of an attorney for the transactions to be done properly, and without exposing you to legal action.

Answered on 7/24/07, 11:23 am

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