How does a lease option work?

Click stars to vote (left is low, right is high)

(1 votes, average: 2 out of 5)

 Loading ...

[?]
 Print This

A landlord agrees to give a renter an exclusive option to purchase the property. The option price is usually determined at the outset, but not always, and the agreement states when the purchase should take place—whether, say, six months, or a year or two down the road.

A portion of the rent is used to make the future down payment. Most lenders will accept the down payment if the rental payments exceed the market rent and a valid lease-purchase agreement is in effect.

Before you opt to do a lease option, find out as much as possible about how they work. Talk to real estate agents, read published materials, and, in the end, have an attorney review any paperwork before you sign on the dotted line.

Discussion Forum

Topic	Posts	Last Poster
financing for real estate and mortgages at 5-10% rates	1	thrifty
5-10% financing for real estate and mortgages	1	thrifty
Where did all of the PMI go?	5	scherner
Do you have the best price today? Post FREE on PROPERTYFIRESALE.COM!	4	Greatinfo
U have best price? POST FREE - PROPERTYFIRESALE.COM (no registration needed)	1	Greatinfo
Advertise Your Condo Listings Today!!! FOR FREE	1	mycondospot
Interesting Real Estate Blog...	6	progressive37
First time owner……..need some good tenant advice.	5	progressive37
Looking to know more about real estate investing.	5	progressive37
T-I-Cs start with T, and that stands for Trouble.	1	PeterWunsch

Plight of New-Home Marketing Companies: Struggling to Survive?

By George W. Mantor
RISMEDIA, November 21, 2008-Lost among the bank failures and resale downsizing has been the plight of new home sales and marketing companies. Once the high-flying benefactors of an explosion of new home sales, they now find themselves wondering where future closings will come from.
While there is excessive new home inventory at the moment, builders […]