In addition to the purchase price, the lease sets the amount of the down payment and the timing of the down payment. The parties may accept a portion of the rents paid for this down payment. Of course, this would generally involve an increase in the amount of rent each month. But some buyers might prefer it as a method of forced savings towards a down payment. Today, options for purchase, option leasing and leasing contracts are three separate financing documents. Although they are similar, they differ in finer details because the differences are state-specific and not all states have identical laws. Talk to a real estate lawyer before entering into one of these agreements with a seller to make sure you understand the effects. The money in the option is rarely refundable and, while no one else can buy the property during the option period, the buyer can sell the option to someone else. The buyer is not obliged to buy the property; If they are desperate to get someone into your home right away, offering a lease-purchase can be helpful, especially now, if people who would have been the main borrowers in the past are now having trouble getting a loan. «I`ve been in business for 22 years and haven`t leased since my first year in business, until two [recently] arrive,» says Golden. «Sellers are always more open to different options for selling their homes, and buyers are looking for more creative ways to buy homes. The market is very different from what I`ve never seen, and I think it makes sense to look at all your options. The money option generally does not apply to the down payment, but a portion of the monthly rent payment may apply to the purchase price.
No one else can purchase the property during the rental option period and, in this case, the buyer generally cannot give up the rental option without the seller`s consent. If the buyer does not exercise the rental option and buys the property at the end of the life, the option expires. The buyer is not obliged to buy the property. In the past, leases gave the buyer the ability to «lock» a price on the home, in the hope that the value of the property could increase until closing. Of course, it could work one way or another in today`s market. For some sellers, the abandonment of the leasing buyer could affect the deal up to tens of thousands of dollars lost due to the market decline. Of course, in other areas, buyers of rent buyers will eventually find themselves because house prices continue to rise. The buyer asks for bank financing and pays the seller in full at the end of the life. While the option money generally does not apply to the down payment, part of the monthly rental goes towards the purchase price. For this reason, the monthly rent is generally higher than the fair rental value of the market. Buyers may find attractive leasing options for certain reasons.