- Joined
- Aug 22, 2007
- Messages
- 304
I strongly believe the Certificate of Independent Legal Advice (CILA) is ultra-important for the lease-option strategy. Not as important for other strategies, but very much so for lease-options.
Why? Because if there is any dispute, the tenant wants to be characterized as a buyer with those much stronger buyer`s rights. The CILA provides good (but not perfect) protection if you ever end up in court.
What`s the problem? Tenants rarely actually go see a lawyer and get the CILA signed.
What`s the answer? I`ve prepared a "Letter to Tenant" that essentially gives the CILA warnings and urges the tenant to actually get a CILA. If they don`t do it, you will have a tenant acknowledgement on your file confirming they know they`re a tenant not a buyer until the option is exercised - very useful if you end up in court. It can be difficult to get the CILA signed, but you can always get this letter signed.
The idea for this letter came out of our recent Deal-Ready Documents Focus Workshops. While we will be discussing this topic in more detail at our Focus Workshops, I thought that this short, one-page letter would be very helpful to all REIN members. The letter can easily be adapted to other strategies where Independent Legal Advice is important. (Please remember to change all of the bold & underlined type to reflect your specific deal.)
Good luck, I hope this helps!
Barry
Why? Because if there is any dispute, the tenant wants to be characterized as a buyer with those much stronger buyer`s rights. The CILA provides good (but not perfect) protection if you ever end up in court.
What`s the problem? Tenants rarely actually go see a lawyer and get the CILA signed.
What`s the answer? I`ve prepared a "Letter to Tenant" that essentially gives the CILA warnings and urges the tenant to actually get a CILA. If they don`t do it, you will have a tenant acknowledgement on your file confirming they know they`re a tenant not a buyer until the option is exercised - very useful if you end up in court. It can be difficult to get the CILA signed, but you can always get this letter signed.
The idea for this letter came out of our recent Deal-Ready Documents Focus Workshops. While we will be discussing this topic in more detail at our Focus Workshops, I thought that this short, one-page letter would be very helpful to all REIN members. The letter can easily be adapted to other strategies where Independent Legal Advice is important. (Please remember to change all of the bold & underlined type to reflect your specific deal.)
Good luck, I hope this helps!
Barry
