What Are Lease Options
In today's world, there are separate financing options. Lease purchase agreements, lease options and of course the choice to purchase. they're noticeably alike but have different clauses if you look at the details.
There are variances within the legal documents because many states have varying laws. If you wish to accept on of the three options, it's better to enter an agreement directly with your seller.
Option to Purchase
In this option, both parties agree that the buyer has to pay the house value of that time. The price might be negotiable but the price usually gets decided at the very beginning. At that time, the seller wont be able to sell to another. However, if the buyer does not consider the option, the option will expire and the seller can then sell the house to others.
Both parties agree that the buyer would have to pay the house’s market value at that time. The price might be negotiable but the price of the property usually gets decided at the very beginning. In this option, the buyer then agrees to buy the house on lease for a specific period of time. however, the renting period can last from 1 year to 3 years, depending on the agreement.
The money given by the seller in the lease option is rarely refundable and not even 1% of this value applies towards the house’s down payment.
The buyer cannot assign the lease option agreement without the approval of the seller. However, if the buyer does not exercise according to the agreements and the terms expire, then he might not be obligated to purchase the property.