Re: I NEED HELP ON LEASE OPTION - Posted by nat
Posted by nat on July 04, 2002 at 20:56:54:
lease option is a right to control a property for certain amount of times (1-3yrs mostly/) but not a obligation to purchase. you have a buyer that don’t qualify for conventional loan but want to own a home.they have money to pay for down payment around 5-8% asking seller price, Option Consideration (non- refundable,not deposit) amount for the property .
you give them two separate agreement one for lease and one for the option agreement. the monthly payment will be higher from their current payment which means more $$$ in pocket.why higher because you will give them credit toward the purchase price once they exercise their option, example $ 500.00 current rent+$100.00(credit for option)=600.00/mo.
you need also to put that in the form about the credit $$ which mostly T/B are happy about.
About the maintenance of the property you will also put the amount of your obligation in writting again. you will tell them since they are trying to purchase the property you expect them to treat their place as their own now, which mostly do. this is their future house and a expensive investment.
Maintenance, you will tell them (repair) anything beyond (let say)$300.00/yr, depend on your area, you will cover it as a seller.
since you are a good seller, during those option years you can help them build their credit too.
some seller do some owner financing (not sure if applicable). if your not clear about this, think like a Lay-away in department store, similar to how it work.
Just my 2 cents