Lease purchase frequently asked questions

How does lease purchase work?

The home is leased to the buyer/tenant with rent paid on a monthly basis. With an option to buy contract attatched with a predetermined sale price. The buyer has the option to purchase the home at any time during the duration of the lease purchase term at the predetermined price.

What if the buyer/tenant does not exersize the option and buy my home by the end of the lease purchase term?

If the option to buy is not exersized, the homeowner keeps all money that has been paid, and is then free to exicute another lease option with a different buyer/tenant or extend the term with the current buyer/tenant. It is strictly the up to the homeowner.

Who is responsible for repairs and maintenance in a lease/purchase deal?

In most cases the buyer/tenant is responsible for all maintenance and repairs during the term of the lease. Any improvements made to the home are subject to the owners approval.

What if the buyer/ tenant doesn't pay the rent or causes damamge to my home?

Since the buyer/tenant will be the future owner of the home and has a vested interest in it, it is extemely rare for them to cause damage or get behind on payments. But in the unlikely event that this does happen the owner (under contract stipulations) has the leagal right to evict them.

When will I recieve payment in full for my home?

The homowner recieves payment at closing when the buyer/tenant exersizes the option to buy.

Who pay's closing cost?

This is negotiated between buyer and seller at the begining of the term in most cases the buyer/tenant is responsible for all closing cost.