Tell Me More About Lease Options

Let’s Break It Down:

Lease Agreement

·         Rental amount tends to be higher than or lower than average rent.

·         Maintenance is done by the buyer

·         Term or Length tends to be between 1 to 3 years

·         Deposit is smaller than normal

·         Establish a right o use the property but not own – breach results in eviction

Purchase Price

·         The right to buy but not the obligation

·         Set purchase price for a set time

·         The house can be bought on or before the expiration of the option

Option Fee

·         This allows buyer to have time to purchase house

·         Non refundable

·         Goes against the purchase price

·         Can be financed

SO What is the Different between a Lease Option and Rent To Own?

A lease option is type of rent-to-own agreement that gives the renter the option to buy the property at the end of the lease. A rent-to-own agreement is a contract that allows a renter to lease a property with the option to buy it before the lease ends.