Home Buying Lease Purchase Or Lease Option What's The Difference
Because I do long term rentals in Franklin, NC I am being asked this question more often I thought Nick did a great job letting you know what the difference it between the two. I have one home now that is a Lease Purchase and is up in June of this year. Usually when you tell the customers their Option money is non-refundable they get this look on there face like their money is already lost. That said it's not for everyone. Nick is right when he say's this is a different animal because there is no standard one way so I always Highly suggest you get your own Attorney involved to explain your options. Either way know that all contracts are negotiable to suit the buyers and sellers.
Home Buying Lease Purchase Or Lease Option What's The Difference
There are two optiions of buying and selling residential property in Madison or Huntsville Alabama that I want customers to know about or if you simply need more information as a SELLER or BUYER you might try those links to my website...I'm always available for your questions.
I've posted about this real estate topic before, but because of all the calls I'm getting from customers wanting to know if the seller of a certain property might also be willing to offer a lease purchase or lease option I feel it's worth repeating.
Most callers do not know the difference between a lease purchase or lease option and depending on their finances or individual circumstances one or the other form of purchasing a home may not be available to them, however, the process of each is much the same as with a standard (if there is such an animal) straight forward home purchase...at least in the beginning.
LEASE PURCHASE:
With a lease purchase the buyer has his/her financing in order and for whatever personal circumstance is unable to actually close on the purchase of the home until some future date, usually a year out, but totally negotiable. Depending on the terms, buyer and seller are able to negotiate, the buyer is usually required to put down a significant down payment (usually not refundable depending on terms of the contract) and pay rent or lease money during the agreed lease period until the future closing date. A portion of the lease money can sometimes be negotiated to apply towards the purchase price of the home. This transaction often works well for the buyer and seller who may have missed an opportunity because of timing.
LEASE OPTION:
In the lease option method of purchasing a home the buyer is also putting down a significant down payment
or option money paying for the "option" to purchase the home at a future agreed date. The buyer rents or leases the home for the predetermined lease period and typically is not allowed to apply any of the lease money towards the purchase of the home. At the end of the lease the buyer does not have to exercise his/her right to purchase the home and may walk away at the end of the lease period. However, "option" money is not refundable and it's understood that the seller will retain it. The buyer is only buying the option to purchase the house.
If you need a knowledgeable real estate professional in Madison or Huntsville Alabama area, why don't you let me Google that for you! I also know outstanding agents in all states and Canada should you need help relocating to a new area.
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