If you are in verse with the real estate matters then you would be familiar with various lease agreements and lease options available. Lease purchase can be done after you get into an agreement with the site owner or house owner.
With this option you can firstly own the site or home and then go for purchasing the site or home. Both lease option and lease purchase are different terms in reality. You would want to know what the differences between lease option and lease purchase are.
Here there are some of the basic differences. With the lease option the tenant has given opportunity to have the property for a time period but it is not mandatory for the tenant to buy the property. This is usually one of the best offer as there are no obligations in it and the tenant can just use the property for a while and give away. However there is an agreement made and there is some amount which has to be deposited with the owner of the property for security purpose.
This payment which you have made up will be used up for down payment of the property later. Finally when the time period allotted gets over you will have three options to go with. One being, you can put an end to the lease and go somewhere else.
Secondly you could ask for extension of the term of rental or lease agreement which have made. And thirdly you can purchase the property from the owner where the amount which you paid already can be used up to pay for the cost.
Knowing the lease purchase- In a lease purchase the tenant usually buys the property which he/she has taken up on lease. So if the tenant is interested in purchasing the property they will need to obtain a mortgage. Most of the lease purchase agreements do not require extra payment because the tenant has been paying for housing the property as per lease agreement.
However you should have to recheck with your lender or owner about the conditions according to the agreement made for lease. There are various benefits of having a lease agreement between the owner and the tenant because the payments which you have been making could be used up for down payment of purchase of the property. So the payments which you have made will not just go wasted.Here the tenant is actually becoming an investor in the real property and is sharing in the property’s appreciation while maintaining an agreed upon sales price.
Lease option contracts can sometimes be complex, and real estate lease option tips suggest contract language focusing on the terms of the contract, rather than simply the price. One should also take care of the payment process. The prices which are usually set can be older and outdated for lease purchase so checkout the current pricing trends in the market place and then go ahead with the lease agreement