Nevada City Virtual Tour

Thursday, December 8, 2011

Is lease to own home or rent to own purchase worth the risk?

A lease-to-own house purchase (also "rent-to-own purchase" or "lease purchase") is a lease combined with an option to purchase the property within a specified period, usually three years or less, at an agreed-upon price. Such arrangements have proliferated in the post-crisis market because many potential homebuyers can't meet the tougher loan qualification requirements today, and many potential sellers are unable to realize a satisfactory price in any other way.


Lease-purchase plans can be structured in such a way that both parties benefit. They can also be structured so that all the benefits flow to one of the parties and none to the other.
Buyers especially need to be careful because they usually know less about the market than sellers, and the seller usually provides the contract.


Please contact me about these types of arrangements. They can be minefields if not careful.

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