How Does a Lease-to-Own House Work?
The Buyer Makes an Offer When a buyer enters a lease-to-own agreement on a home, he enters the arrangement with the intention of purchasing the house. Although he will be renting the home for a period of time before closing on the purchase, his rent payment will be somewhat higher than market value, and he will offer a considerable deposit which may not be refundable should he not complete the purchase of the home. When the buyer signs the lease, he will also be asked to sign a separate sales contract, much like the contract used for traditional sales, which outlines the purchase agreement for the property. For this reasons, it is important for the the buyer to carefully evaluate the home and negotiate an appropriate purchase price before signing any lease-to-own contract. The Buyer Leases the Home After moving into the home, but before closing on the purchase, the buyer leases a lease-to-own house for a period of time. A typical lease period is approximately 12 months, though some lea
