| A Lease Purchase allows you to rent and | | | | option is different, so you need to carefully |
| occupy the home while having a contact to | | | | read your contacts, because this is just a |
| purchase at a future date. There are two | | | | general description. |
| documents that allow you to do that. A lease | | | | |
| or rental agreement and then a purchase | | | | And then, what is a Lease 2 Purchase |
| contact to buy the property at a future date. | | | | Contract? |
| Lease purchase agreements vary so there is | | | | |
| not a standard contact used by all. A lease | | | | Again, it's very easy. A Lease 2 Purchase |
| purchase often refers to a contract for a | | | | contract combines a basic lease contract with |
| certain purchase of the property. | | | | an option to purchase contract, which creates |
| | | | a Lease 2 Purchase contract. |
| "Lease-options" are similar in that they | | | | |
| often lock in the price of the home at the | | | | The tenant/buyer pays to the landlord/seller |
| onset of the contract. However with many | | | | a nonrefundable option deposit that is |
| lease options, you have the right to purchase | | | | applied to the purchase price of the home. |
| the property by a certain date, but are not | | | | The tenant/buyer then pays to the landlord |
| obligated to do so. Most often options money | | | | seller rent to compensate the landlord/seller |
| is non refundable in the case that you do not | | | | for the tenant/buyer's use of the property. |
| purchase the property. | | | | |
| | | | Rent payments are usually made on a monthly |
| With current forecasts of growing home | | | | basis. A portion of that monthly payment is |
| values, however, it's not surprising lease | | | | often applied to the purchase price and/or |
| purchases and lease options today are gaining | | | | the down payment of the home. |
| favor. | | | | |
| | | | During the term of the lease, but before the |
| Sometimes, these programs help first-time | | | | option expires, the tenant/buyer has |
| home buyers with credit and savings problems, | | | | exclusive right to buy the home under the |
| to purchase their first home. | | | | terms to which both parties have previously |
| | | | agreed. |
| As the buyer, some of the benefits may be | | | | |
| that you will have minimum cash may be | | | | What's more important, you are in a position |
| required, sometimes credit problems at the | | | | to make the Lease 2 Purchase option known to |
| present are okay since sometimes the seller | | | | a select group of potential clients who would |
| will finance you or if getting a mortgage | | | | not qualify to purchase in any other way. |
| loan you have time to repair your credit | | | | They will remember the opportunity you have |
| before you buy, you have faster equity growth | | | | given them and reward you with future |
| than just renting, some of your money is | | | | business. |
| working for you towards the purchase, the | | | | |
| option money may be credit towards your | | | | At minimum, you have a fiduciary |
| purchase, you may have lower down payment at | | | | responsibility to determine whether a Lease 2 |
| closing since you may have option money or | | | | Purchase agreement could help them solve |
| rent credits to apply, prices may have | | | | their real estate problems. It may be exactly |
| appreciated beyond your lock in price, and | | | | what they need -and trust me- they will thank |
| you have time to check out the property while | | | | you for it! |
| you live in it. Every lease purchase or | | | | |