Lease-To-Buy a property a good option

Leasing is a contract that allows the renters to lease their property to some one else for a period of time.Some buyers are not sure if they're ready to own a home and take on all the responsibilities and extra costs that go with home ownership. the lease-purchase contract gives the buyers a chance to give home ownership a test drive.

Advantages for the buyer/tenant

In lease-option contract, for the period of time stated, you are the one who has the option to buy the property.

At the same time a portion of your rent goes toward building equity and, when you purchase the home, is applied toward the down payment.

You have a contract to buy the home when the lease is up.

you can own home at any time during the contract.

Advantages for the seller/landlord

Immediate cash transaction from the tenant to the owner and the opportunity to sell your property later on.

Either tenant or buyer does not buy your property, you keep the upfront fee .

Get higher-quality tenants who take better care of the home since the tenants may want to buy it in the future.

Retain the tax-shelter benefits while you have tenants in the home.

You may get some peace of mind that you have tenants in your home who are working toward buying the home.

Things to consider when utilizing a lease-option

Often do home inspection and document necessary repairs.

Be sure about all payments are kept up such as mortgage, taxes, and insurance for the property.

Check whether there are any liens against the property.

Record everything in writing; option contracts must have all the specific information that a sales contract would have .

Prepare a draft of an undated and unsigned purchase agreement.