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 the price of the house. Any appreciation up until closing would be the buyers (not the owner/seller). 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. When 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, will be paid to the purchaser at closing.
Property taxes are paid by me (the seller/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 typically do a lease with option.
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Sorry, all of our homes are currently rented.
Please check back often as we add new homes as soon as they become available.
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