What is a lease option?
What a lease option does is it allows a renter to buy a property, or in other words it gives the renter an option to buy the property within a certain time period. In most cases when buying a house, part of the future down payment is paid by a portion of the rent. Most people who use the lease option are those that do not have sufficient funds to make a down payment and to pay for closing costs. Usually lease options are found more when the market is slow, because if it were to be hot the seller would not use the lease option and would be able to cash in more by selling the property. What the renter needs to know about lease options: • The portion of your rent that would go towards the purchase is usually only used when rental payments are greater than the normal market rent. • The real estate world can be tricky, make sure you read all of the paperwork and have someone that knows what they are doing read through it with you to make sure you do not have any unsolved concerns. Do your h
A lease option is a contractual agreement between a Buyer (tenant) and the Seller (owner) where the Buyer will lease the property for a given period of time, and has the option to purchase the property during their tenancy at a price agreed upon in advance. Thus the Buyer leases the property and secures an option on it to secure his or her future right to purchase. The Buyer has the unilateral option to buy, or not to buy the home from its owner. It is considered unilateral since only one of the two parties are bound. If the Buyer wants to buy and exercises his option to do so, the Seller must sell. The Buyer secures his option by paying an option fee to the Seller.
