Seller gets top dollar with lease purchase agreement
Under a lease purchase agreement the tenant is gratified to buy the home after the lease period is over. The buyer is allowed a time period as stipulated in the contract to close the deal and the condition can be amended mutually for any extension. This practice closes the deal normally, smoothly and neither the buyer nor seller getting affected.
The seller has an upper level advantage in this system of lease deal, as he gets an upfront payment, as deposit, from the tenant. 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 acquiring agreement the seller has a greater degree of benefit, because if the buyer needs to extend the period of deal than the seller has an advantage of claiming extra money.
All necessary payments are made by the buyer during the deal period The tenant is under compulsion to keep the property in perfect condition and undertake repair works as and when requiredneeded. The agreement is advantageous to both buyer and seller
The buyer in the meantime has the advantage to stay in the property and evaluate the cost of the property and if found inappropriate may opt for another one, by foregoing the deposit money. The buyer is exempted from making large payments. However, he is under legal compulsion to pay a security deposit.
The seller can opt to cancel the agreement in case of default payment. They wait for the opportunity for three repeated months after which they deprive them of 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 demand of buying properties is greater the seller can demand top dollar for the property.
The buyer may request for an extension. This is an chance for the seller to go for cost hike and ask for more security deposit. The advantage is more for the seller as he gets the market valuation of the property, prevailing at the time of final closure of the deal
Whatever be the condition, the lease purchase deal is beneficial, both 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
