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.
Artice Source:

Related Articles in Leasing

People interested in the above article are also interested in the related articles listed below:

IndustrialLink tracks thousands of Fort Worth industrial properties available for lease on a monthly basis to provide accurate and informative data on the Fort Worth industrial space market. IndustrialLink tracks properties 10,000 sf and larger and provides free access to search by dozens of fields.
It is very common nowadays for companies to make lease contracts regarding their equipment instead of buying it first hand. If the business flourishes and makes profit, they will have the option to buy such equipment after the loan comes to an end. As you can see, equipment leasing works very much like car leasing. There are many advantages to equipment leasing, but we are not here to discuss them. In this article you will find the basic points to keep in mind regarding equipment lease contracts.
Fast development today has made us to overlook the basic needs that human being possess. Food, shelter and clothes used to be the essential requirements of human that were given the top priority. Our outlook towards things have changed. Shelter or housing is among them. Considering the high rates today, in future, it will be more difficult to buy houses. Therefore, the best option that is being chosen by today's generation is obtaining the house on lease.

More in Leasing

Excellent, Larry. Thank you for taking the new article directory technology and making it work to the max. I encourage everyone to keep contributing and contributing regularly. I can attest to the fact that this site is already a strong directory in a field of many. Kudos to Larry!

Matthew C. Keegan
The Article Writer


I find it a delight to use both as an author and a publisher. It is full of nice little surprises that make the whole process of writing, reading and publishing articles a complete delight. This is one that comes out tops and beats the rest hands down.

Eric Garner
Managing Director


I did a Google search and came across your site. It was exactly what I was looking for and was elated to find such a broad range of articles. As I am launching a free magazine in a small town in Florida, I wanted to be as resourceful as possible while still being able to provide some content that is interesting and well written. Your site has all the variables in the mix. Excellent Site hitting all the notes in the scale sort of speak.

Mo Montana
Florida, USA

Article Topics

Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.
ArabicBulgarianCatalanChinese (Simplified)Chinese (Traditional)CzechDanishDutchEnglishEstonianFinnishFrenchGermanGreekHaitian CreoleHebrewHindiHungarianIndonesianItalianJapaneseKoreanLatvianLithuanianNorwegianPersianPolishPortugueseRomanianRussianSlovakSlovenianSpanishSwedishThaiTurkishUkranianVietnamese