FAQ
What is a lease purchase?
What are some of the benefits of selling on lease purchase?
How long is a lease purchase?
I have more questions. How do I contact you?
What happens if the tenant-buyer doesn't buy?
A lease purchase is a pre-arranged agreement between the seller (homeowner) and the buyer (tenant/buyer), with all terms extensively negotiated and finalized upfront. The homeowner receives upfront nonrefundable funds, secures a rental income set at the top of the market rate, and establishes a selling price at the peak of the market.
Throughout the lease period, typically lasting 12 months, the tenant/buyer holds the option to purchase the property. During this period, the tenant/buyer takes responsibility for all maintenance and repairs, ensuring a hassle-free experience for the homeowner. Upon the tenant/buyer's decision to exercise the purchase option, the transaction follows a pattern similar to a standard purchase and sale agreement. Notably, this process excludes the involvement of a Realtor, resulting in significant cost savings for the homeowner. Moreover, many agreements specify that the purchaser assumes the bulk of closing costs, providing the seller with additional financial advantages.
Avoiding negotiations on price details – securing a top-of-the-market selling price, even in a buyer's market.
Eliminating Realtor commissions, resulting in significant cost savings.
Enjoying a consistent rental income every month.
Having the buyer cover the majority of closing costs.
Dealing with Tenant/Buyers rather than regular tenants, ensuring a property is treated with care as they see it as their future home.
Access to a large and readily available market of tenant/buyers at all times.
Being free from the hassles of dealing with tenants and property maintenance, as most repairs and upkeep are the responsibility of the tenant/buyer.
Retaining title and tax benefits until the title is officially transferred at the closing.
The choice is in your hands. Traditionally, it spans a 12-month lease, yet the tenant/buyer holds the freedom to exercise their purchase option at any juncture within this period. Should you prefer, an extended timeframe is not just an option but often the favored choice in many deals.
Absolutely, that's a possibility. Life brings unforeseen circumstances like divorce, job loss, or illness, which may lead to your tenant/buyers facing challenges in securing financing. In such situations, you hold the reins and have options. If your tenant/buyers have been responsible, paying rent on time, and maintaining the property, you can consider extending the deal for a few additional months, resulting in extra rental income. If, for any reason, your tenant/buyers are unable or unwilling to purchase the property, we are here to help you set up another lease purchase with new tenant/buyers. You might leverage a tighter rental market to increase rent, or if your property has appreciated, you can adjust the purchase price. Once again, the power is in your hands, and you have various choices at your disposal.
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