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The art of the Lease Purchase
These things go by many names in the industry, lease purchase, lease option, lease with option to buy, rent to own. They are all similar creatures. I want to try and explain these a little bit at least from my own experience with them in Central Florida. I am not a lawyer, nor do I play one on TV, but this is how I like to do these.
I like to call these arrangements a "lease purchase" and nothing else. A lease purchase basically means that a tenant is renting the property and ultimately will purchase the property by the end of the lease term.
I used to like to give tenants a "lease option" or a "lease with option to buy" which gives the tenant the option not to purchase the property if they don't want to, but the end result is either the tenant is going to be able to get financing or they aren't, so why give them an option? My goal is to sell them the property, not have them rent it and back out. Also, I don't like the term "rent to own." When I used this language in my advertising, people started thinking about how they rent a television ... more
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