Interested in Leasing with Option to Buy?
Of all the ways to buy real estate , leasing with an option to buy is one of the most creative alternatives if your credit is not as strong as it could be. Tenants who are interested in buying, but are not currently in a position to buy can use it to lock in a price against future price increases. This is also a tool that can be used by owners and property managers to attract quality tenants. And it is used by owners with property that, for whatever reason, is not renting or selling at the price they want. The Option to Buy Agreement Leasing with an option to buy is exactly what it sounds like – a renting tenant signs the agreement with a landlord stating that the tenant may buy the property at the end of a prearranged time period. The owner is obligated to sell at the option price, however, the tenant is NOT obligated to buy the property. But when a lease-purchase is exercised, the buyer is obligated to purchase at the end of the rental period. A common misconception is that once...