Today the real estate market is uneasy with hesitant buyers and desperate sellers provides alternatives to the traditional methods of selling real estate. The rent to own option is the perfect alternative that is gaining popularity with buyers and sellers alike to own the home of your dreams.
Definition of Lease to Option to Buy:
Lease Option agreements are made between the seller and potential buyer who for one reason or another are unable to commit themselves to a traditional purchase of the home. A commitment is made usually requiring the tenant/buyer to pay an initial option Fee and a monthly lease payment for a period of time. This allows the buyer to live in the property as a renter for a specified amount of time before a final sales contract must be agreed upon. At the expiration of the lease period the tenant has the option to purchase the home for a specified amount. Financing the purchase at this time requires the tenant to secure a loan through a bank, mortgage lender or other outside source.
Definition of Lease to Own:
Lease to own option transactions are similar to lease options; however, rather than granting the tenant-buyer the option to purchase the home, lease purchases contractually obligate the tenant-buyer to purchase the home.
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