Leasing with the Option to Buy –Is it right for you?

Leasing with the Option to Buy –Is it right for you?

I have had a lot of inquiries about “Leasing with an option to buy”. What is it exactly? This is my interpretation.

A renting tenant signs an agreement with a landlord stating that the tenant can buy the property at the end of a prearranged time period. The owner is obligated to sell at the option price, but the tenant is not obligated to buy. However, the tenant can buy the property only if the landlord exercises the option to sell.

The option to buy is terminated if the tenant in any way violates the lease before closing the agreement to purchase. The option to buy only gives the tenant legal title when he exercises the option, then it becomes an absolute and binding contract of sale.

The tenant often pays above-market rent for the property, but a (nonrefundable) portion, called the rent credit, is credited toward the purchase price.

Thinking a Lease with Option to Buy on a home in St. Augustine is right for you? Call me, I’ll be happy to discuss it with you.