If you have any questions regarding the purchase of leasing, the rental option or a real estate transaction, please contact us. For the first time in the late 1970s and early 1980s, leasing option sales became popular financial instruments and were primarily used as a means of circumventing alienation clauses in mortgages. However, they also have other advantages. Proponents have argued that the sale was not a sale because it was a lease, but the courts have argued differently. Owners of hard-to-sell properties often offer lease purchase agreements. They sell it to a traditional buyer who would pay cash to the seller if the property was a plum and was easy to sell. Sellers usually receive the market value at current prices and the relief from the mortgage payment on a virgin property for the duration. In addition to these factors, there are other things that can go wrong in these lease option agreements. To protect your interests, here are some possible issues to consider: Each state has its own necessary disclosure forms. To carry out a “bona foi” transaction, it is important that the seller informs the buyer of necessary repairs, defects or other problems with the property. Often, when the buyer learns of a material error after the inspection, it can lead to a bad taste in the mouth and wonder if something is wrong with the property yet. Treat the process the same way you would if you were buying a home: do your due diligence, research the neighborhood, compare prices to other nearby homes, research the contract, and research the seller`s history. It is important to note that there are different types of leases, some of which are more consumer-friendly and flexible than others.
Lease option agreements give you the right, but not the obligation, to buy the house when the lease expires. If you decide not to buy the property at the end of the lease, the option is easily extinguished and you can leave without obligation to continue paying or buy rent. This is not always the case for lease purchase agreements. A lease can be a great option if you`re an emerging landlord, but you`re not quite financially ready. These agreements give you the opportunity to get your finances in order, improve your creditworthiness and save money for a down payment while “locking up” the house you want to own. If the money from the option and/or a percentage of the rent goes towards the purchase price, which they often do, you can also create some equity. A lease allows potential buyers to move into a home immediately, with several years, to work on improving their creditworthiness and/or save for a down payment before attempting to get a mortgage. It goes without saying that certain conditions must be met, in accordance with the rental agreement. Even though a real estate agent helps in the process, it is important to consult a qualified real estate lawyer who can clarify the contract and your rights before signing anything. . . .