What is a lease purchase contract?
A lease purchase contract, also known as a rent-to-own contract, is a legal agreement between a landlord and a tenant. This type of contract allows the tenant to rent a property with the option to purchase it at a later date. It is a popular option for individuals who may not be able to afford a large down payment or qualify for a mortgage.
What are the types of lease purchase contract?
There are two main types of lease purchase contracts: lease-option and lease-purchase. In a lease-option contract, the tenant has the option to purchase the property at the end of the lease term, but is not obligated to do so. On the other hand, a lease-purchase contract requires the tenant to purchase the property at the end of the lease term. Both types of contracts typically involve the payment of an option fee and a portion of the rent being applied towards the purchase price.
How to complete a lease purchase contract
Completing a lease purchase contract is a straightforward process. Here are the steps involved:
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