For most people who want to buy a real estate property but are challenged in shelling out a huge amount of money, lease to own option is a practical agreement in order to acquire a real estate property. The lease to own option is recommended since home buyers would have the chance to pay the amount of the property in easier terms.
Lease to own or sometines called rent to own allows a home buyer to occupy a home without having to pay the amount in full. The payment shall be settled within the agreed time frame—making it very flexible and easier for the home buyer.
The usual rent to own option required the buyer to pay higher monthly dues compared to the amount if the propert would be bough in cash. The home buyer would also be required to pay a portion of the total price of the property through the down payment.
Under the lease to own agreement, a formal contract must be drafted. This should be formalized to protect the welfare of both the home buyer and the seller of the property. The contract of the lease to own agreement shall contain deatils such as the monthly rental fees, down payment, selling price, and expiration date of the agreement. Cetain contingenies and other relevant terms must also be put into writing to make everything formal about the agreement.
The home owner has the option to sell the property without having to pay a certain amount to a rela estate broker. However, the home owner must always keep in mind that advice from a broker may be hopeful in coming up with a fair and just deal. Other paymants such as the transfer fees and title insurance must be discussed prior to the contract signing between the home owner and home buyer.
The lease to buy option is apparently different from the mere rental option. The lease to buy option does not mean automatically mean the tenant would buy the property. However, it is clearly an opportunity to purchase the property in the future. The lease to buy agreement can be a very complex process that requires expertise in the field. If you are a home owner who plans to offer your property under the lease to own agreement, you may want to consult a real estate expert first so you would not end up getting screwed on the agreement. Home buyers should do the same thing.
Buying a property is a serious business, and even the smallest details of an agreement should be carefully looked into. The lease to own option is an easy way for home buyers to purchase a property under a payment set up that is very flexible. These days, buying a property that is worth thousands or millions of dollars is not that easy. Hence, the lease to own option could be a highly viable agreement that home buyers must grab. However, they should clearly understand the contract of the agreement before they shell out any hard earned amount from their part.
The Need for a Real Estate Lawyer
In some cases, property owners and home buyers would even hire a real estate lawyer to explain the details and draw the necessary documents. There are cases when the sellers would give the option money to real estate brokers or agents are full commission. However, the help of the real estate lawyer should not be replaced by the advice of a real estate broker or agent. It is still best to look into the legal matters before entering such a serious and big real estate deal. The lease to own option is very advantegeous. You just have to know the basics and seek help from experts.
Realty Express, Inc. is an experienced provider of housing solutions to home buyers based in Alberta in Canada. As family-owned business, Realty Express, Inc. aims to help people who have bad credits or low down payments who cannot qualify the bank requirements for homeonwership. Learn more about Realty Express, Inc. at www.realtyexpressinc.ca.