Lease Purchase Agreement

Lease Purchase Agreement for Real Estate

Click Here To Get a Lease Purchase Agreement Forms Package For $9.97

 

Lease Purchase Agreements are not new to the American real estate market. They have been the preferred exit strategy for many real estate investors and retiring landlords for decades. They have also become a popular option for home sellers that need to get their property sold without slashing the asking price.

A lease purchase agreement allows the seller to get top dollar for their property because they are allowing the buyer rent the house until they are able to close on the purchase (or until the expiation of the agreement).

The seller usually requires a reasonable purchase deposit. If the buyer purchases the property before the expiration of the agreement, the deposit will be credited toward their down payment but if the buyer defaults on the agreement, the purchase deposit is non-refundable.

The term of a lease purchase agreement is typically from twelve (12) to twenty four (24) months. However, the length of the agreement is completely negotiable between the two parties when filling out the agreement and many buyers are able to close much sooner than the deadline agreed to in the contract. Often this is because they are able to qualify for a mortgage quicker than they originally thought.

Sometimes the buyer simply needs some time to sell their old home or they may need to establish a short history of making monthly lease purchase payments before they are able meet the requirements for a new loan. Those are two of the more common reasons a buyer may need to get into a house on a lease purchase. But there could be a number of reasons a buyer would want to do a lease purchase and it is not always because of credit or income problems.

Most sellers prefer to charge a monthly payment that is a little above market rent to allow a portion of the monthly payment to count toward the purchase price. This can be a big incentive that helps to attract buyers. The amount of this monthly purchase credit is completely negotiable between the buyer and seller when they are filling out the agreement. And since the seller will typically be asking a price toward (or slightly above) the top of the market for a property offered for sale as a lease purchase, the monthly rent credit generally works out good for both parties.

Since the seller is usually locking in the price up front and the buyer intends to be the future owner of the property, the buyer is typically required to take care of the repairs and maintenance.

Click Here To Get a Lease Purchase Agreement Forms Package For $9.97

 

 

This website is designed to provide accurate information regarding the subject matter covered; however neither the
publisher nor contributors assume any responsibility for errors, inaccuracies or omissions. If you need legal

 or other professional advice the services of a competent professional should be sought.

 

Lease Purchase Agreement

Privacy Policy