Lease with Option to Purchase Explained . . .
Lease with Option can be done several different ways. Typically, the details of the sale of the property have been predetermined (sale amount and closing date), all we are doing is delaying the closing until a time better suited for the buyer.
The buyer pays between $1000 - $2000 (depending on the price of the house) in consideration of the option to hold to price of the house. Any appreciation up until closing would be the buyers (not the owner). This option money is not a security deposit nor is it under any circumstance refundable. It will only be applied in the form of a down payment at closing. Buyer can close anytime within the lease period, with no penalty.
Security deposit is paid as with any lease. If you buy the house, it is applied to your down payment at closing. If you change you mind for any reason, the security deposit will be used to cover any unpaid rent, late fees or damage until termination of the lease.
When rent is paid on time (by or before the 1st of each month) Landlord agrees to apply $100 per month towards the purchase of the house, up to a maximum of $2400 (24 months x $100). If tenant does not purchase house within the time frame agreed upon, none of this money will be paid. If purchaser obtains financing prior to the end of the contract, there will be no penalty & all monies paid under the Landlords Consideration towards the purchase of the house to date, shall be paid to the purchaser at closing.
Property taxes are paid by me (the owner of record) until you close on the house. The maintenance however is your responsibility. I thoroughly go over each house before a lease with option to make sure there are no current problems. If there are, I fix them before we enter into the lease with option.
So, to recap, a lease with option gives several benefits to the buyer when fulfilled. It helps you build your down payment towards the purchase of a home. In this area, typically houses appreciate. Any appreciation is the buyers, not the seller. This time also allows the buyer to;
1) clean up credit
2) payoff any outstanding bills, lowering their debt to income ratio
3) allows buyer to sell current home to use equity in the new purchase
4) build their down payment on the new home
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We offer most of our properties "lease with option". If you are interested in a lease with option to purchase, check back often to see the new properties we've added to this page.
Scroll down to the bottom of this page to see how we do a lease with option.
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For SALE, RENT, or LEASE w/OPTION to PURCHASE
2646 Ruby Lane (off Diamond Loop)
Rent - $1050
Sale price - $129,900
2 full bathrooms
2 car garage!
This house built in 1999 has 3 large bedrooms and 2 full baths. It has a large kitchen with oak cabinets and wrap around counter. Stove, refrigerator, microwave & dishwasher provided. The kitchen opens up into the living area, making it a spacious "great room" with vaulted ceilings. Newer carpet and paint! The master bedroom has a walk-in closet. It has a laundry room and a large two car attached garage. It has central air conditioning and gas heat. It's wired for an optional security system and dish satellite TV.
- Rent - $1050 per month ($1050 includes $50 discount when paid early)
- $50 more per month per pet and smoker
- Security Deposit - $1300 ($100 more per pet and smoker)
-Last month's rent - $1050 (can be paid in 5 monthly installments of $210)
- OTP earnest money $2000 (optional) applied towards purchase plus owner will give $100 per month towards purchase price of $129,900)
House is available for "lease with option" to purchase, as well.
For more information, Go to www.RentFromLinda.com or call 513-779-2675