Greenville Lease To Own Homes ~ Search
Simpsonville Lease To Own Homes ~ Search
In today’s economic condition, most people find it difficult to buy a house. Mortgage loans are difficult to get; some even have bad credit history that prevent banks from providing finance to buy a house. What the majority does is to opt for rented houses or apartments. However, there is still an option for those who are dreaming of owning a house. It is called lease purchase or rent to own home. It is the most widely practiced real estate technique these days. The essence of lease purchase is that you make a contract with the house owner, pay a monthly rent, live in the house, and when the contract expires buy the house. There is no need for paying the full price of the property up front. You can pay in monthly installments in the form of rent while you start to live in the house even before the seller has transferred the title to you. In the meantime, the buyer can arrange the finances to buy the property at the end of the contract period. It is like buying a home in installments.
The greatest benefit of a lease purchase arrangement is that the buyer can actually start to live in the house he is intending to buy. When the buyer and the seller enter into a lease purchase arrangement, it is typically done in two different ways. There is the lease option method and the lease purchase method. When the buyer chooses the lease option method, there is no obligation to buy the property at the end of the lease period. He can buy if he wants or he can let it go. But, if the agreement is made as a lease purchase, the buyer is required to buy the property before the lease period expires.
When a the agreement is made, it has to include some basic elements like the names and addresses of the buyer and the seller, the details of the property, the value of the property, the amount of rent to be paid each month, the date for paying the rent, penalties for late payment, down payment amount and the mode of payment, deposit amount, date of the contract, expiry date of the contract, final amount to be paid for buying the property, penalties for breach of contract, etc. These details have to be filled in the appropriate forms for lease option and lease purchase.
Buyers are the greatest beneficiaries of this method. They get to live in the house while they are still paying for it. But, the down side is that if they cannot buy the house at the end, their deposit money will not be reimbursed. Sellers also benefit from lease purchase. They may not be getting a lump sum amount from the sale; but, they still can sell the house. And, if the buyer does not use his option to buy the house, the deposit money will be a bonus for the seller. The only issue is that they cannot change the value of the property according to the fluctuations in the market. The buyer will be paying only the mentioned amount in the contract.