I have an elderly neighbor who needs an income but does not want to leave their home. I am willing to enter into a real estate option agreement with monthly payments made to the owner with the option to buy the house (at below market price) less total cash payments upon the death of the owner.
The problem is that under such an agreement, the property would have to go through probate before I could execute my option (I think). Is there a better way to accomplish this with a Land Trust or a Living Trust?
I would use a land trust no matter how you structured the deal. It would protect the title from adverse legal action against both parties. Also, if you record the option agreement, it will be a cloud on the title and the estate would have to honor that option contract. Furthermore, using a land trust would by-pass probate and make the transaction much smoother.
Mr. Land Trust