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Finally, the standard lease-option that everyone seems to have gone gaga over is

Why? Because under the terms contained in a standard lease-option agreement,

the relationship between the parties is that of debtor and creditor, and not that

of lessee-optionee and lessor-optionor. This debtor-creditor relationship is created

whenever the terms of a lease-option call for the property owner (lessoroptionor)

to credit the option consideration and a fixed portion of the monthly

lease payment toward the purchase price when the real estate option is exercised.

Once this debtor-creditor relationship is created, the tenant (lesseeoptionee)

has an equitable or ownership interest instead of a leasehold interest

in the property being lease-optioned. When a lease-option agreement gives the

lessee-optionee an equitable interest in the property being lease-optioned, it becomes

an installment sales agreement and not a lease-option agreement. This

costly and time-consuming lawsuit to foreclose instead of an eviction lawsuit.

Please consider this when you contemplate ignoring my advice and becoming a

party to a standard sublease-option transaction!