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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.
You are purchasing a forms package.
This site does not offer properties for lease purchase, sale or
rent.
LeasePurchaseMadeEasy.com sells
informational products and is not a law firm, does not provide legal
advice, does not act as your attorney, and is not a substitute for
the advice of an attorney.
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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