A lease purchase contract is a little different then a lease with option to purchase contract.
Lease with Option to Purchase is a form of real estate purchase which combines elements of a traditional rental agreement with an exclusive option of right of first refusal to later purchase the home.The price of the home is explained in the contract and the tenant/buyer has a certain amount of time to utilize this option. The tenant/buyer pays to the landlord/seller a non-refundable option deposit that is applied to the purchase price of the home. It is a fee paid to the seller to reserve the buyer’s exclusive right of purchase. In the event the tenant/buyer does not choose to purchase the home and utilize the option the option money would be retained by the landlord/seller and it is non refundable to the tenant/buyer.
Lease Purchase Contract is a lease combined with a contract for sale where the price is negotiated and the closing date is specified as the same date the lease ends. The contract for sale is still contingent on the buyer/tenant obtaining their financing, they still have the right to an inspection (just as any sale contract might spell out). The tenant/buyer then pays to the landlord/seller a sum that is typical to the rental amount usually on a monthly basis, of which a portion of that monthly payment may or may not be applied to the purchase price of the home, but which normally covers the mortgage amount owed by the landlord/seller. All aspects of the contract and lease can be negotiated before it is finalized.
These contracts are commonly used where a buyer wants to purchase a home, but due to credit issues would not qualify for a loan yet. Other times a buyer would do one of these contracts in order to save money for a down payment and closing costs.
Our agents can help the tenant/buyer find the lease purchase property and write up the contract and go over it with you extensively.
Our agents can market your home as a lease purchase property and give you the piece of mind with our expertise on the contract phase.