09 May WHAT CAN YOU DO ONCE YOU HAVE THE OPTION IN PLACE?
Structuring the DealThe property is a large mansion house on a main thoroughfare in a medium-sized city. It was constructed originally in 1917 to house the family of Oscar W. Flintrock who made a fortune in mining phosphate in the local mountains. Over the years it has had a number of owners and uses including the current 8 apartments which house students from the local university. You believe you can remodel the old house into 3 office spaces with a nice reception area on the main floor. The mansion is located about 3 blocks from an expanding downtown.After careful consideration you decide that an option is the best approach. Explain how you would structure an option agreement to purchase the mansion. The property was most recently listed at $425 000.The owner Charles Flintrock later (after he has signed the option with you) has a dream that the house is really worth $600 000.Can he withdraw the option after it is in place?What can you do once you have the option in place? Discuss fully.What if in your investigation of the property you determined that the rock used in constructing the property is in fact radio-active and would require significant and expensive clean-up?
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