Lease Options - Things You Should Know
There are difficult times in the real estate market. Lease options are a good way to provide some boost to the market. You have to be creative while making investments or you can be at losses in such difficult times.
First you should understand what a lease option is. A lease option is just an option for the buyer to buy a property by paying an extra amount in addition to the monthly lease amount. Here the tenant is not obligated to buy the property.
A lease option is another innovative method to aid the real estate market. Lease options attract more buyers to invest in the property market. As it is not an obligation to purchase the property, there is a lot of flexibility in such deals.
Such an arrangement is beneficial for both the buyer and seller. In most cases, the buyer does not have the money to purchase the property and is not willing to get a mortgage. The buyer may also not be eligible for a mortgage due to a low credit score.
The seller benefits from the lease option as he gets a tenant willing to become the owner too. The tenant will care about the property as if it is his own. It also assures a monthly lease amount and the hope that the property may be eventually sold out.
You should structure the deal in a way it makes sense. You can either decide on a purchase price before the deal or have the property evaluated at the time of option expiration. You should decide the option which can benefit you and not the seller.
There are properties which go down in value with time. This can happen due to various reasons. In such cases, you should not go for a predetermined price. Instead, opt for the fair market price at the time of option expiration.
An experienced real estate lawyer should be hired to study all terms and conditions on your behalf so you do not get a surprise shock later on. You can rest assured that the terms are not biased against you.
About the Author:
Find out more expert information about Lease Purchase Agreement. Find out more at http://www.leasepurchasemadeeasy.com
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