What is Lease with the Option to Purchase? Some might know it as Lease with the Option to Buy.
Let me explain…..
It’s 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.
– Rent is typically higher than market rent
– Overage is applied to down payment to purchase
– Buyers should know ahead of time the deposit needed to complete the purchase
– A good lease-option agreement will put in writing and is recommended to be reviewed by an attorney.
– The buyer should also consult with a licensed Loan Officer.