A lease purchase agreements is an agreement that allows the lessee or tenant to purchase the property after the lease has expired. The price of the property is defined in the lease purchase agreement. A lease purchase agreement is often beneficial to both the tenant and the owner. Here are a few things you need to know about lease purchase agreements.
If you are the tenant, make sure the purchase price of the house and the monthly rent are clearly defined in the agreement. This will also help you clarify whether you can afford the amount at the end of the lease period.
If you are the tenant, it is important for you to clearly specify the lease period and the deposit amount that you wish to obtain from the prospective tenant and ensure you have the deposit amount with you just in case the tenant later decides and he or she does not want to purchase the property.
Remember to obtain the correct and most up-to-date forms that incorporate all the recent legal changes. Also make sure that the form is for your state, since clauses within the forms differ from state to state.
If you are looking to enter a lease purchase agreement enlist the help of a mortgage agent. An agent can help you appraise the property accurately and also advice on whether the price you are paying is worth it or not.