Lease Purchase

Lease Purchase Agreement Made Easy

 

Forms Package Includes:

 

1.  Lease Purchase Agreement

 

2.  Basic Purchase & Sale Agreement

 

3.  Basic Rental Agreement

 


 

Lease Purchase Forms Package For Real Estate

 
A Lease Purchase Agreement allows the seller to rent the property to the buyer until closing. A lease purchase agreement is generally used when the potential buyer is serious about purchasing the property but is not immediately ready and/or able to close.

 

 

How Long Does The Buyer Have To Close?

 

The maximum term of the agreement is negotiable (one of the fill-in-the-blanks spaces on the contract), but a common length is 12 to 24 months. The contract does allow the buyer to close sooner.

 

 

Does The Buyer Put Down a Purchase Deposit?

 
Yes. The contract calls for the buyer to make a purchase deposit, which shall apply toward the buyer’s down payment; but is non-refundable in the event the buyer defaults. Three percent (3%) of the purchase price is suggested as a reasonable purchase deposit. However, the amount of the purchase deposit is negotiable. It is not uncommon for this amount to be significantly higher or lower.

 

 

Is The Purchase Price Today’s Value or The Future Value?

 

Most buyers and sellers prefer to set the purchase price up front. However, the seller is relying on the buyer to close with cash or a loan before the deadline they both agreed to in the contract. Therefore, if the seller agrees to extend the contract, the lease purchase agreement calls for an increase in the purchase price.

 

 

What Are The Advantages For The Buyer?

 

Buyers love it because it gives them time to save up for a larger down payment, clean up past credit problems or time to sell another home. Buyers can also receive a “forced savings plan”, since a portion of the monthly rental payment is usually credited toward the purchase price. The amount of the monthly rent credit is one of the negotiable terms of the agreement.

 

 

What Are The Advantages For The Seller?

 

Since they are allowing the buyer some flexibly on the closing date, sellers generally get today's top market value for the property. Monthly lease payments may exceed market rents and the buyer is typically required to handle all the repairs and maintenance, since they are the future homeowner. And obviously the seller gets relief from paying the mortgage on a vacant property.

 

 

Are you a homeowner, real estate investor or builder having trouble selling a property?

Are you a potential homebuyer having trouble qualifying for a loan right now?


A lease purchase may be the solution you need in today’s market place.

 

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This site does not offer properties for lease purchase, sale or rent.

 

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This publication is designed to provide accurate and authoritative information regarding the subject matter covered and is sold with the express understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought.

 

 

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Lease Purchase Agreement