How does a lease with option to buy work?
Nicole, With a Lease Purchase, you agree to lease the home for an agreed to period of time and then purchase it from the seller. The lease amount, price and whether any portion of your rent goes towards your purchase is negotiable between you and the seller. A Lease with an option to purchase provides the seller with no guarantees that a sale will actually take place. You have the option to buy or not to buy. If you don’t exercise your option, you get to move on or contine to lease the property. An option will cost you an additional amount as it compensate the seller in the event a sale doesn’t occur and ensures you are serious about the property. A Lease purchase will likely have a greater portion of rent applied to a down payment as a sale is planned at some point. In each situation, make sure you have a competent Real Estate Attorney to help you review any Lease Purchase or Lease with an Option to purchase. Good Luck, Ken Dooley.
