A lease purchase is a property lease for a fixed period of time, often 12 to 24 months, with an obligation for the tenant to purchase the property at the end of the lease period. A portion of the rent is applied to the future down payment. The purchase price of the property should be specified when signing the lease purchase. A lease purchase differs from a lease option because a lease purchase requires the tenant to purchase the property.
The lease purchase agreement usually restricts the right to transfer or sell the lease purchase to another person. Read the lease purchase agreement carefully to see if there are any restrictions. The ability to transfer or sell the lease purchase can also be negotiated before signing the lease purchase.
A lease purchase agreement has benefits for both the buyer and seller:
A lease purchase can be a very complicated process. An experienced real estate attorney can guide you through the process of buying or selling your home and can help you negotiate favorable terms in the lease purchase agreement.
Last Modified: 10-26-2012 03:11 PM PDTLaw Library Disclaimer
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