Lease – to – Buy, better known as “Rent to Own”, is gaining in popularity these days among both buyers and sellers of real estate. A Lease – to – Buy contract allows a renter to lease a property and at the end of the lease gives them the option to buy it. Typically, a nonrefundable option fee is paid when the contract is signed which may be applied to the purchase price when the option is exercised. And, a portion of the monthly rent may also be applied to the purchase price or towards the buyer’s down payment. In today’s tight lending environment a potential buyer with some credit issues may benefit from this type of arrangement while he takes steps to remedy his creditworthiness. A seller benefits by being able to get immediate cash flow on their property and a contract to sell at a later date.
There are other benefits for both buyers and sellers and, as with almost anything, several issues to watch out for. Never sign any contract without a review and consultation with your attorney.
Is Rent to Own a viable option for you? Give me a call and let’s find out!
Facebook Badge
Thursday, November 6, 2008
Lease-to-Own
Subscribe to:
Post Comments (Atom)
4 comments:
Very informative article, you covered all the important points that even I was not award of, thanks for posting this entry.
Thanks Robert! Real estate finance has many twists and turns but it doesn't have to be complicated. Thanks for reading!!!
Lease-to-own could be an option for new home buyers who have children, and are paying for their educations (either private school or college, etc.). It gives them the feeling of security that apartment living doesn't afford. Also, they might just gain a yard for family use and enjoyment.
I hadn't really thought about that angle but you are right. Yet another advantage possible with a lease option.
Post a Comment