What does it mean ‘a lease-to-own or lease-option agreement?
A lease-option agreement means lease you are permitted to dwell in the home with an option to purchase the home in the future at a settled price. Lease-option agreement also expects a little higher monthly rent for the home and compels the owner to credit a portion of that rent toward your down payment. If the owner’s expected market rent is $1500 then he might increase to $1,800. $300 per month will go as your down payment. It means by the end of the year, you would have paid $3,600 towards the house purchase price. The necessity of contract An official agreement is made specifying the monthly rent and the amount credited towards the down payment. All the important and minute information should be made clear like your right to obtain a home inspection etc; A lease-option is a direct deal between you and the owner. The estate broker and the commission don’t stand. So this is a transaction between you and the owner. Payment of other closing costs such as title insurance and transfer fee
