Lease Purchase Homes in Greensboro NC
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Basics of a Lease Purchasein Greensboro NC
- Buyer pays the seller option money for the right to later purchase the property. This option money may be substantial.
- Buyer and seller agree on a purchase price, often at or a bit higher than market value.
- During the term of the option, the buyer agrees to lease the property from the seller for a predetermined rental amount.
- The term of the lease purchase agreement is negotiable, but the common length is generally from one year to three years, at which time the buyer applies for bank financing and pays the seller in full.
- The option money generally does not apply toward the down payment.
- A portion of the monthly lease payment typically applies toward the purchase price.
- Option money is nonrefundable.
- Nobody else can buy the property unless the buyer defaults.
- The buyer typically cannot assign the lease purchase agreement without seller approval.
- Buyers are often responsible for maintaining the property and paying all expenses associated with its upkeep, including taxes and insurance.
- The buyer is obligated to buy the property.
Doing a Lease Purchase in Greensboro NCHire a real estate lawyer to draw the documents and explain your rights, including those of possession and default consequences. The property might be encumbered by underlying loans that contain alienation clauses, giving the lender the right to accelerate the loans upon sale. Sometimes sellers give the option money to their real estate agent as full payment of commission. Agents are not always involved in the exercise of lease options or fulfillment of lease purchase agreements and, even if you have retained real estate agent representation, you still need a real estate lawyer. Agents are not lawyers and cannot give legal advice. In the event of a lease purchase, obtain all the disclosures and do your due diligence just like you would on a regular sale. |
