Writing a lease purchase agreement

lease purchase contract

A lease purchase can be a reasonable way to purchase a home. I suppose if they can get it, why not ask. The typical contents of a Lease-Purchase Contract[ edit ] Monthly Payment - How much the tenant will be paying monthly. He needs time to save up a down payment and he doesn't want to lose the home in the meantime.

In effect, this gives you a six-month warranty on the home. The owner can lock in a reasonable price for the home in advance. The rental agreement in most respects is a standard landlord-tenant agreement to rent the property at an agreed-upon price for an agreed-upon term.

Either way, if they back out, the option fee and extra rent paid would most likely be lost and would go to the property owner. This contract will also include the option fee and how much of the monthly payment will be credited to the down-payment for the purchase of the home at the end of the lease.

He may need some time to resolve credit problems so he can qualify for a traditional mortgage.

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How Do I Write a Lease Purchase Agreement?