Lease Purchase Agreement - Know The Nuances Before Getting Into One

 By: Rayner Chandler
Most of the people would have information about a lease purchase agreement. A lease purchase agreement is when a house is leased out to a tenant by the owner, and at the end of that lease, the tenant will have the option to buy the home if they want too . In an option that is given to a tenant to lie in the house that has to be paid in full is called "leasing to own". This type of agreement benefits those that are unable to get a mortgage agreement and don't have the funds to put a down payment on a property that they want to buy.

The owner is in more benefit with this agreement as the tenant cannot change the price that has been agreed upon in the agreement for the home. The agreements that have been made come to a finality before the tenant takes occupancy of the house. After this the owner of the house is bound by the agreement with the tenant that is staying in his house any cannot sell the house to anyone else. So to better understand this agreement, the person that is leasing the home will be paying a certain percentage each month until it the money totals up to the down payment at the end of the lease. At the close of the lease agreement the tenant has to pay the remaining amount till the home is completely owned by him.

The legal viewpoint has to be obtained from a mortgage agent alone in the lease purchase agreement. It is the duty of the owner to get clarification of all the legal nuances and for this there can't be anything better than to hire a specialist while selling ones home.There has to be two partitions of the lease purchase agreement. The leasing provision is the first part that has to be made note of. The agreement has to necessarily include all the details of both the owner and the tenant such as full names, current address, and the date of the agreement for the lease term. The details of the property also has to be mentioned.The agreement has to necessarily have details as lease starts and ends, rent, due date for payments, fines that will be included for late payments on rent, etc.

The second part is the lease purchase agreement. What will be included is the last day of the purchase, last payment amount before the tenant owns the property, consequences of not following through with the payments, the amount of the deposit, total amount of the home, and the signatures of the owner and the tenant. One can get an approval from the federal authorities only when they have all the details in the agreement as mentioned above. A lawyer will be needed to look over the agreement and make sure that all of the information provided by both parties is legit.

It is only thorough knowledge of the lease purchase agreements that will help you in buying a home of your own.
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