| Lease option is a very good agreement for both | | | | serious about the maintenance and up keep. Thereby |
| buyers and sellers. With the help of this contract, a | | | | the current owner does not have to worry about the |
| house is sold over a period of time. In this case buyer | | | | expense of repairs and is assured about the proper |
| and seller, both are benefited creating a win- win | | | | protection of his property. |
| situation for both of them. For a lease option to be | | | | · With a proper contract and precise clauses in place |
| successful it is critically important that the deal is | | | | the mentioned factors are covered and hence peace |
| meticulously drafted. It is a general observation that | | | | of mind for the seller is assured. |
| poorly made contracts create confusion and problems | | | | · Then the deal closes; there is no extra cost for the |
| later. While making a lease agreement it is better that | | | | commissions to third parties. |
| you take help of a professional who knows all the | | | | · The seller also gets to retain tax advantages of |
| clauses and rules and can draft the agreement in a | | | | ownership until the time property is sold. |
| way which avoids litigation in the future. | | | | · With proper structure in place the seller can get |
| Advantages of the lease option for the sellers | | | | debt relief, even if the mortgage is higher than the |
| · The major benefit is that sellers can lock in the | | | | market rate. |
| property at a price at par or above the market price | | | | · Furthermore, there is equity build up as the |
| even when there is slowness in the real estate market. | | | | mortgage balance is reduced. |
| · For a seller lease option can turn negative cash | | | | · And last but not the least the property owner can |
| flow into a positive one. | | | | renegotiate the price, rent and deposit terms if the |
| · When it comes to lease option, the seller is assured | | | | tenant cannot close the deal on time. |
| to attract the best quality clients with genuine interest in | | | | There are two sides to any leasing agreement, and |
| the house. Hence a lot of un-necessary enquiries are | | | | would do well to be benefitting both sides as best as it |
| eliminated in the first place itself. | | | | can. Due to so many advantages a lease option is one |
| · The seller also gets to have higher rent than the | | | | secure way to fulfill the American dream of owning a |
| current trend in the market. | | | | property for a buyer. While the seller also gets to |
| · The other financial benefit is that the seller also | | | | enjoy the situation, which provides equal opportunities, |
| receives a higher non-refundable fee instead of | | | | a balanced leasing agreement is a good bet and very |
| smaller refundable deposit. | | | | important for a positive final outcome. Otherwise It is |
| · The buyers who opt for rent to own option always | | | | simply getting you back to square one, and ending as |
| take better care of the house and property and are | | | | just another rental agreement. |