Re: Land Contracts vs. Lease options? - Posted by Brad Crouch
Posted by Brad Crouch on December 13, 1999 at 12:15:42:
A lease option is simply a lease with an option to purchase. Within the agreed upon term, the tenant buyer must obtain the financing to exercise the purchase.
A land contract IS the financing vehicle! With a land contract, the purchased IS financed.
Also, with a land contract, the occupant has no opportunity to change his mind and walk away from the deal (as easily as from a L-O), in the event that the school system turns out to be not as good as originally thought or depreciation occurrs rather than appreciation. Or if “terrible” neighbors are discovered.
The tenant buyer in a L/O has more control over their future than an occupant involved with a land contract.