Expert: Mike Fortunato - 1/4/2009

Question
I have a shop building that I am trying to sell. I have a buyer and he wanting to know if I would lease to own for him. I don't know where to start as far as the steps to take and what the numbers should be. The price tag I have on this building is at $150,000.

Answer
The usual procedure is to structure the lease so that it includes an option to purchase provision, whereby the tenant can buy the property at certain terms. My advice would be to create such a situation, and make the option a one-time right (such as maybe one year in the future). You can also create a first right of refusal to purchase, whereby if you elect to sell during the tenancy, your tenant can match any offer you would receive. there are many ways to structure this -- just depends on the results of the negotiations between the parties.