Landlord Question and Answer Forum
do all lease to owns just have an option? and is the one on here just like a regular rental lease but with that option? so a 12 month term, and if they can get the money they can have it. there's no interest gained on my part?
mike w, GA on Thursday, August 11, 2011
RE: lease to own
A Lease to Own by definition means that a tenant is leasing with the desire to purchase or "own" the property after certain criteria is met. An option gives the tenant an option to purchase at the end of a specified lease term. These can be structured with a down payment at the beginning, and higher rental payments with a portion going to the purchase price. OR some are just a time frame and an agreed upon sale price. It is important to structure these agreements so that your tenant acquuires NO EQUITABLE INTEREST in the property while renting. I would strongly suggest including this type of add-on to any Lease Purchase Agreement. If you are in unfamiliar territory, have an attorney review any agreement before entering into it.
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