| In today's economic condition, most people find it | | | | if the agreement is made as a lease purchase, the |
| difficult to buy a house. Mortgage loans are difficult to | | | | buyer is required to buy the property before the lease |
| get; some even have bad credit history that prevent | | | | period expires. |
| banks from providing finance to buy a house. What | | | | When a the agreement is made, it has to include some |
| the majority does is to opt for rented houses or | | | | basic elements like the names and addresses of the |
| apartments. However, there is still an option for those | | | | buyer and the seller, the details of the property, the |
| who are dreaming of owning a house. It is called lease | | | | value of the property, the amount of rent to be paid |
| purchase or rent to own home. It is the most widely | | | | each month, the date for paying the rent, penalties for |
| practiced real estate technique these days. The | | | | late payment, down payment amount and the mode |
| essence of lease purchase is that you make a | | | | of payment, deposit amount, date of the contract, |
| contract with the house owner, pay a monthly rent, live | | | | expiry date of the contract, final amount to be paid for |
| in the house, and when the contract expires buy the | | | | buying the property, penalties for breach of contract, |
| house. There is no need for paying the full price of the | | | | etc. These details have to be filled in the appropriate |
| property up front. You can pay in monthly installments | | | | forms for lease option and lease purchase. |
| in the form of rent while you start to live in the house | | | | Buyers are the greatest beneficiaries of this method. |
| even before the seller has transferred the title to you. | | | | They get to live in the house while they are still paying |
| In the meantime, the buyer can arrange the finances to | | | | for it. But, the down side is that if they cannot buy the |
| buy the property at the end of the contract period. It is | | | | house at the end, their deposit money will not be |
| like buying a home in installments. | | | | reimbursed. Sellers also benefit from lease purchase. |
| The greatest benefit of a lease purchase arrangement | | | | They may not be getting a lump sum amount from the |
| is that the buyer can actually start to live in the house | | | | sale; but, they still can sell the house. And, if the buyer |
| he is intending to buy. When the buyer and the seller | | | | does not use his option to buy the house, the deposit |
| enter into a lease purchase arrangement, it is typically | | | | money will be a bonus for the seller. The only issue is |
| done in two different ways. There is the lease option | | | | that they cannot change the value of the property |
| method and the lease purchase method. When the | | | | according to the fluctuations in the market. The buyer |
| buyer chooses the lease option method, there is no | | | | will be paying only the mentioned amount in the |
| obligation to buy the property at the end of the lease | | | | contract. |
| period. He can buy if he wants or he can let it go. But, | | | | |