A Lease Agreement is advantageous to both buyers as well as sellers. It allows the buyer the option to stay in the property by paying rent and later buying it and closing the deal. If you are interested in purchasing a home but are not well equipped to close the deal, you could always give your property on rent and later on close the deal by ensuring you stick to the terms and conditions of the agreement. There are some important facts which a seller needs to keep in mind.
The buyer is given a time frame of 1 year to 2 years to close the deal. The buyer and the seller can mutually decide on the time frame and it can always be extended depending on how comfortable they are with each other. Lease purchase helps in closing the deal quickly without any hassles.
It is definitely advantageous to the seller since he gets a deposit from the tenant. If at any point of time the tenant decides to back out of the property without buying it, the owner or the seller has to option to keep the deposit money without refunding it. The purchase deposit is 3% of the buying price of the property. This amount can be mutually agreed between the buyer and seller. This amount may vary depending on their understanding.
The seller or the owner of the property has a greater hold and if the buyer wants to extend the contract period, the seller has every right to demand a greater price. This agreement enables the buyer to get some extra time enabling him to clear off past financial dues. He gets enough time to dispose off his property and thereby get enough funds for the down payment which he needs to make for the property he is currently residing in.
A lease purchase is advantageous for the tenant or the seller as he is able to strike the right deal which is on the higher side. During the course of the agreement, the charges which have to be incurred monthly may increase in contrast to the lease expenses which have to be borne monthly by the tenant. The tenant has to bear all the expenses related to repairs of the property since he is residing in the property. Hence, a lease purchase is beneficial to both the buyer as well as the seller.
You could browse the net and get more details related to the lease purchase. A lease purchase agreement enables the seller of the property to close the deal more profitably.