Getting started with lease purchase leads to discover tenant buyers worldwide with regards to your vacant real estate. On the other hand, Lease Purchase Agreement permits the vendor to be able to lease the property towards the buyer until finalizing.
Sometimes the two terms are used interchangeably, but in fact they suppose two totally different type of leasing methods. A Lease Option is a lease contract between buyer and seller, where the buyer has the “option” to buy the respective property when the contract term is up. With a ease option, there is no obligation whatsoever to buy the home. Sales contracts are not put forward, unless clearly specified by the renter that he wishes to buy the property. This is a very god option for young couples who cannot have access to loans on good terms, or for the ones who do not have yet a very stable income, but they still wish to try and see.
The Lease Purchase Agreement on the other hand, is a contractual agreement between seller and buyer, where the buyer is bound by contract to pay off the remainder of the value at the end of the contract.
In case the Lease Purchase goes wrong (the buyer cannot pay at the end), he/she is instantly loosing the initial deposit. Either option you choose, make sure you act responsibly before signing anything. Both of the options come to facilitate the process f buying a home for you, and facilitate the process of selling the property for a seller. There are advantages on both sides, but if one of the parties backs out from the process (usually the buyer), then he is going to lose important money. Don’t forget to research properly, and talk to an attorney if necessary.
