Lease to Own Contract

[tdill]

What is the name of your state (only U.S. law)? TN

I am considering purchasing a business. The owner has offered me the option of Leasing to Own the business. I know that a local bank has a lein on the business. Is this legal? What happens if I pay my lease but the current owner doesn't pay his mortgage? Hypothetically, the bank could foreclose on the owner regardless of any agreement that I have with the owner and I could lose my equity.....right?What is the name of your state (only U.S. law)?

 

[JETX]

I am considering purchasing a business. The owner has offered me the option of Leasing to Own the business. I know that a local bank has a lein on the business. Is this legal? What happens if I pay my lease but the current owner doesn't pay his mortgage? Hypothetically, the bank could foreclose on the owner regardless of any agreement that I have with the owner and I could lose my equity.....right??

Either purchase the business outright AFTER he clears the lien... or find another purchase.

 

[HomeGuru]

Yes, I agree as to that being the safest scenario.