Lease Option Versus Lease Purchase - Understanding the Difference

Lease Options ?nd Lease Purchases are bec?ming m?re ?nd m?r? common. It is very important that on? understands both these terms properly ?n order to make ?ure the? kn?w what th?? are g?tting them??lv?? int? and wh?ch ?n? best suits y?ur situation.

We ?re first go?ng to look ?t h?w ? Lease Purchase i? diff?r?nt from ? Lease Option.

If ??u hav? b??n ?n the real estate business ?r h?ve read var?ou? articles online ?n r?g?rds to leasing, y?u m?y be aware th?t b?th thes? terms hav? b??n used interchangeably wh?n ?n actual fact the? ?r? completely different

If you l??k ?t a lease option, th?? ?s m?re ideal for the tenant. With a lease option, ??u have the option ?f buying th? property ??u ar? living in. You ar? not, however, required t? do so. The seller is required t? sell to ?ou sh?uld ?ou decide t? exercise your option. Also, the seller ma? n?t sell th? property to anyon? el?? until y?ur option h?? expired.

In comparison to this, ? lease purchase ?s qu?t? different. In th?? circumstance, the tenant ?f th? property would be required t? buy the property b?fore the agreement expires. A lease purchase i? ? mutual agreement th?r?for? wh?ch b?th parties ar? expected t? complete th?ir part of the deal.

Both Lease Options and Lease Purchases ?r? commonly used by people wh? ??n not qualify f?r a mortgage, but w?uld like to ?wn ? home.

Sellers u?e th?m when th?? w?uld lik? t? sell th?ir home quickly, but ar? unable to d? ?o due to the current real estate market. Both Lease Options and Lease Purchases have the?r benefits f?r sellers.

With a Lease Purchase, th? benefit ?? obvious. The tenant-buyer ?s required to purchase the home at the end of th? contract period. Psychologically, th?? i? f?r m?re attractive for som?on? who would like to sell the?r home.

A Lease Option m?y ?ctu?ll? provide m?r? protection for the seller however. The reason for this is th?t a Lease Purchase conveys wh?t is called equitable interest to th? tenant-buyer.

This means that ?n the event ?f default, th? seller would hav? to g? through the judicial foreclosure process ?nd th?n th? eviction process r?th?r than ?ust the eviction process. This foreclosure process can add ?ix months ?r mor? t? the time that ?t would tak? t? remove the tenant from the property. During th?s time, th? tenant ?? living in th? property without making payment ?nd th? seller st?ll ha? to make th? mortgage payment on th? property. For thi? reason, m?ny sellers choose a Lease Option contract ov?r a Lease Purchase.

It ?s very important th?t you understand th? difference b?tw??n both a lease option ?nd ? lease purchase before ?ou enter ?nt? ? contract. All t?o often, people sign contracts th?t the? d?n't re?lly understand.

By understanding the basic differences between ? Lease Option and a Lease Purchase, ?ou ??n determine whi?h contract structure i? r?ght f?r you. This ?? essential ?n making th? b??t decision for ??ur financial future.

brandon phillips summerfest summerfest usher fidel castro rick santorum ozzie guillen castro comments