How risky is the lease purchase compared to a regular purchase agreement?
Depending on the market, buyer can negotiate a lower rent in exchange for making higher mortgage payment later on, or seller can negotiate higher rent because he is basically financing the purchase. This aspect really depends on the negotiating skills of the respective parties. Lease purchase contract is relatively risk-free for both sides. The first right of refusal clause prevents the owner from selling the house out from under the renter. The option deposit and time limits allow the owner to still make a sale if the renter is unable or unwilling to purchase the home.
