Lease Purchase Homes in Greensboro NC
I get lots of calls about lease purchases, and we do not help with lease purchases or rent to own properties. I am not a big fan for several reasons. For one, there are very few sellers offering lease purchases available at any time - you are severely limiting your choices by only shopping for homes among available lease purchases. Secondly, there are a lot of misconceptions about lease purchases. Some buyers think this will be a good way to fix their credit and qualify for a loan - usually this is not the case.
I think most prospective buyers are going to be better served by continuing to rent until they qualify to buy a home without the lease purchase (at least in the Greensboro market). Once you qualify, you'll have far more choices and you'll be in a better position to negotiate.
I think most prospective buyers are going to be better served by continuing to rent until they qualify to buy a home without the lease purchase (at least in the Greensboro market). Once you qualify, you'll have far more choices and you'll be in a better position to negotiate.
*Please note, the homes listed above may or may not qualify for lease purchase.
Basics of a Lease Purchase in Greensboro NC
- Buyer may or may not pay 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 sometimes applies toward the purchase price.
- Option money (if any) 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 (but not always).
- The buyer is obligated to buy the property in some lease purchase agreements - others they are not.
Doing a Lease Purchase in Greensboro NC
If doing a lease purchase through a private party, hire 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.
*Please note, we do not help with lease purchase or rent to own properties.
