What happens in a lease with purchase option?

A lease with an option to buy a contract is a House with an option to purchase it within a time limit specified, usually one to three years to lease. The end of the sales contract is an option available for tenants - have the choice between the exercise of option or not. On the other hand, the owner provider, a commitment has, that must be taken into account, as a tenant with the agreement meet provided. So it is very important to understand each request prior to entering this type of agreement the terms of the lease to purchase contracts different. How is he WorksA lease with option to buy a contract that combines a typical lease with option to buy the House agreement. A license fee "Option" that can be a lot is usually in advance required and non-refundable. These are the cost to the client the exclusive right to purchase property, have if you above exercise this option or not complete. The rent for the House is often about the market rates, but part of it is often credited against the purchase. As it is usually not the cost of the option period refundable.Option and PriceTwo sell other important parts of the agreement are the option period and the selling price. As a general rule, the full price is the property in the Treaty; Instead of listing a dollar amount, the property can be purchased for your market value. Tenants are arranged for a period to purchase the property. If you buy before the time step, lose the right of option, tricky rent went towards the low payment.Seller AdvantagesEspecially in a real estate market, there are many advantages of the provider, the leasing option. There must be no real estate Commission numbers, it may be able to set a price that little mehr isthohe rate the market while he was a right of option, and more to rent the market rate the signature of the contract and if the customer do not exercise the option he aganz option fee and rent.Buyer AdvantagesThe-lease option results in many advantages for buyers. Contract locks in the selling price escalation these results in automatic equity taking minute advocates on real estate market. On the other hand, if the market is expected to decrease and home loses value, tenants can try to negotiate the price or may not remove the option step chose. If the buyer temporarily below - are bad credit tenant or unemployed period option allows your loan, build to improve your income and are suitable for a loan.CautionsLike another contract, lease option can be written in favour of the party over another, or it can be written also both use. If the words "at the market price" is replaced by a specific purchase, much of which can and tenants benefit disappears buyer will determine what has later become rate market to a bone of contention. If the option period is very short, can the tenant unable to exercise the purchase due to income or credit problems. In contrast to a standard contract, there is no emergency written in a contract of lease option contract.Other ConsiderationsThe lease option be prepared can an effective way to buy or sell a home. It may be a case for inexperienced buyers if the owner owner the language of the contract, which makes it almost impossible for tenants included exercise the option. Some States rules to protect the tenant buyer against practices of predators lease option, leasing options. It is very important for both parties to understand all aspects of the Treaty before conclur (s) theAgreement and check the status of the rules for these types of agreements.