A Lease Purchase Agreement Can Help a Seller Get Top Dollar for Their Property
Under a lease purchase agreement the tenant is gratified to buy the property after the lease period terminates. Thedeal can also be extended. This method closes the deal simply, smoothly and neither the customer nor seller getting affected.
The advantage goes to the seller as he gets up front payment from the buyer. The deposit cash is forfeited in case the buyer backs out of the deal. The deposit for purchase of the property is equivalent to three percent of the property valuation. The selling price is decided initially by them and may have a section for any variations in the future.
In the lease purchase agreement the seller has a higher degree of benefit, because if the buyer needs to extend the period of deal than the seller has an advantage of claiming extra money.
During all these period under the agreement the buyer is bound to pay all necessary dues related to the property such as taxes and other levies The tenant is under compulsion to keep the property in perfect condition and carry out repair works as and when necessary. This agreement is thus in advantage to both the buyer and the seller
The buyer during the contract period has the advantage to stay in the asset and evaluate the estimate of the property and if found inappropriate may opt for another one, by forefieting the deposit money. The buyer is exempted from making large payments. However, he is under legal compulsion to pay a security deposit.
The seller always retains the option to cancel the agreement in case of default in payments by the buyer. They wait for the break for three repeated months after which they forfeit their deposit money and terminate the agreement.
The buyer also has the option to make the payment before the expiry of the lease agreement and own the property. Since the order of buying properties is higher the seller can demand top dollar for the property.
In some situations the buyer requests for an extension to the agreement. This is an chance for the seller to go for valuation hike and ask for more security deposit. The seller gets an advantage of the market price and additional depost of money
Whatever be the condition, the lease purchase deal is beneficial, equally to the buyer as well as to the seller. Since many people are looking for rent they take the benefit of lease purchase agreement.
If you want to know more about how a
Lease Purchase Agreement can benefit both the buyer and the seller, be sure to visit:
http://www.leasepurchasemadeeasy.com/lease-purchase-agreement.html
