[turbo6bar]

1)The husband is an out of work carpenter and as part of the deal, he will trade labor to build our guest house.

This more of a handshake type of deal, I suppose. What if you don't like his work? What if he, as Chris suggests, finds another job and puts you on the back burner? If things go well, it could be great, but if things break down, it could be pure heil.

2) Would they be responsible to our contract? If not, I don't want to go through the legal mess to termiante and evict.

They are given a period of time over which they may exercise the option to buy the house. They aren't obligated to buy the house. At the end of the period, you can renew the lease/option with more option money, renegotiate the rental rate, or kick them out. The fact you don't want to go through the legal mess to terminate and evict is worrisome. It indicates that you may not be willing to take action to protect your best interest(s).

Think of lease/option as two contracts. You have a rental contract, and a contract covering the purchase option. If they don't live up to the contract, and they don't leave, you can evict. What you don't want to do is give the impression they own the home and have equitable interest. Then, you cannot evict.

Like I said before, screen them like any other prospective tenant. Credit check. Review income. If they pass that screening, AND they are willing to give you $10k in option money, I'd seriously consider them.

Coming at this from a pessimist point of view. If it passes screening, and you can get contracts written properly, go for it.