Hi,
I was wondering if there are any legal issues that could come from buying or selling using options. For example:
- I buy an option on a $150k house for $1500 and is exercisable within 6 months.
- I spend $5000 improving the property which raises the sale value to $175k over the 6 month period.
- I sell my option to buy for $150k to someone for $25k giving me a net profit of $18.5k
Could this cause any legal implications as I haven't actually purchased the property but bought and sold an option for a profit?
Mathew.
I was wondering if there are any legal issues that could come from buying or selling using options. For example:
- I buy an option on a $150k house for $1500 and is exercisable within 6 months.
- I spend $5000 improving the property which raises the sale value to $175k over the 6 month period.
- I sell my option to buy for $150k to someone for $25k giving me a net profit of $18.5k
Could this cause any legal implications as I haven't actually purchased the property but bought and sold an option for a profit?
Mathew.