As a Buyer are you considering a lease purchase? A Lease Purchase may be a great way to get into that home of your dreams. Typically, when you enter into a lease purchase you are leasing the home for a period of time and then PURCHASING the home at the end of the lease period. A portion of your monthly payments are usually applied towards your downpayment of the home. However, there are quite a few things that you should consider before considering or entering into a lease purchase.
Currently, there are NO forms available to any Realtor® in the State of North Carolina to facilitate the Lease Purchase process. It is not as simple as filling out a Rental Contract and an Offer To Purchase and stapling the two together. Therefore, it is highly recommended that you, as the buyer, hire a Real Estate Attorney to prepare the needed documents. In addition, it would be in your best interest, as the buyer, to have your attorney receive the monthly rental payments and disburse accordingly. (i.e. the monthly mortgage payment submitted and your portion of the monthly payment for your downpayment to an escrow account) Why so involved? Again, this is in the best interest of the buyer. There are numerous cases across the country where Buyers have entered into Lease Purchase agreements with home sellers only to have the Home Seller default on their mortgage payment. What happens to the money that you have paid? It's gone. Not only are the monthly payments gone but you have also just lost the opportunity to purchase the home.
While a Realtor® can most certainly help you FIND the lease-purchase homes, help you with inspections, and preparing for the purchase it truly is in your best interest to have a Real Estate Attorney help you with the paperwork for the lease-purchase. Be sure to review ALL the terms before signing! So, if you are searching for a seller that will consider a Lease Purchase I will certainly be happy to help you find the homes. When you find THE home I can highly recommend several Real Estate Attorneys that can assist you with the paperwork so that you are protected!
And here is one staggering statistic to leave you with:
92% of ALL Lease Purchase transactions DO NOT CLOSE!