There are many ways of buying a
home, but sometimes a prospective purchaser is not ready to buy or is not certain to
buy. If this is the case, a prospective purchaser may consider the alternative of
lease/option
to buy.
A lease/option to buy is a contract between the seller and a prospective
purchaser, where the seller agrees to lease the property to a prospective buyer with the
option to purchase the leased property within a specific period.
How does a lease/option to buy works?
Normally seller leases the property to prospective buyer for a specific period
with the provision that part of the monthly rental payment may be credited to the purchase
of the property. The rental payment may be credited to the downpayment, or to help
with the financing, or may be applied to the purchase price.
The advantage of lease/option to buy is that keep the option to buy open for the
specified period, and make easier to come up with downpayment, or qualify for a loan
when the option is exercised. |
