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