A Lease–Purchase Contract, (Lease Purchase Agreement / Lease with Option to Purchase Contract), is the heart of rent-to-own properties. It combines elements of a traditional rental agreement with an exclusive right of first refusal option for later purchase on a home.
A lease option also referred to as a Lease With the Option to Purchase, is a type of contract used in both residential and commercial real estate. In a lease-option, a property owner and tenant agree that, at the end of a specified rental period for a given property, the renter has the option of purchasing the property.
A lease option is an arrangement between the buyer and the seller to purchase a house after renting it for an agreed amount of time. A portion of the rent would be applied toward the purchase of the property if the option to buy is exercised on that property. This is referred to as rent credit. Most institutional lenders will accept rent credit as part of the buyers down payment, if rental payments exceed the market rent and if a valid lease-purchase agreement is in effect. A copy of the lease-purchase agreement must be attached to the loan application. As with any legal contract read the lease option arrangement carefully for details about transferring the option and other important concerns.
A lease purchase contract binds both parties to the sale, whereas in a lease-option the buyer has the option but the seller does not.
You won’t see many Lease Purchase deals in Clarksville TN offered by Real Estate Agencies but your local Clarksville Realtor may know local investors who have homes available and can point you to them.
Lease Purchase deals in Clarksville TN