There are many options that people can opt for when buying property and the lease option is just one of them. It is one that has been popular since the late ‘70s and early ‘80s. They were mainly popularized among bankrupts who could not have access to mortgages, yet were in dire need to own a house. The arrangement was not really viewed as a sale per se, until the court came in and argued otherwise.
It is wise for buyers to consult a lease lawyer before getting into any agreement with the seller. The lawyer will investigate on the true nature of the contract and will advise the buyer accordingly. It is also wise for the buyer to be informed on a few of the basics that govern a lease option. For example, the purchase price is determined at the time the agreement is signed.
This is the amount the buyer will be expected to pay eventually regardless of whether the property appreciates or depreciates in value over time. The term of the agreement also differs in terms of the length of time the two parties have to wait till it matures. Generally, this takes about one year, but could last as long as three years.
During the contract, the seller must not enter into an agreement with another buyer over the same piece of property. If he did, it would amount to a breach of contract and the first buyer may sue him for this. A third party comes in only if the buyer wants to back out of the agreement, either because the value of the property has depreciated, or because he is no longer interested in the sale due to other reasons.
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