[Gary Covert]

Gary Covert

What would stop someone from from subverting an option by colluding with a buyer to “buy” the property at, for example, one dollar over the strike price and then going back to sell at a “real” market price that would be higher, to split the profits and take the option value?

[Anonymous]

Anonymous

Gary,

Believe it or not, but most people are honest and would not go around you.

But for all those who are not — you can record (on public records) a memorandum of option to protect your position.

In the short term, this might not protect your deals. But in the long term, the seller will not be able to do anything with the property without going through you ( ie. you get paid)