photo credit: G & A Sattler
Have you ever considered a lease to purchase agreement. These home purchase deals can sometimes be a great boon to both the seller and the buyer but before you leap its best to know what you’re getting into. Lease options, options to purchase and lease purchase agreements all sound sort of the same but they’re actually three distinct purchase agreements. Each state has its own laws and regulations on these purchases and you should check your state’s particular version as they all vary slightly.
In all three situations the purchaser gives the seller a predetermined amount of money with the understanding that they will buy the property in the future. The amount that is paid is not set by the law but rather by the people making the agreement.
In all three situations a price is typically set and agreed upon beforehand, but some people prefer to wait to set an amount until the purchase actually occurs. In the latter situation some agreement is usually defined so no one is surprised when the purchase date rolls around.
In the option to purchase agreement the future buyer may or may not lease the property until the time of purchase. In the other two situations the buyer is most often the tenant during the interim period.
Option to purchase agreements and lease options typically don’t require the buyer to complete the transaction after the determined period, but someone who enters into a lease purchase agreement is obligated to make the purchase at the end of the predetermined period.
To get the most accurate advice for your state, contact a local real estate attorney and make sure you get the deal that works best for you.
Tags: landlord, lease, real estate, tenant
