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A Lease-Purchase Contract, also known as a Lease Purchase Agreement, is the heart of rent-to-own properties.It combines elements of a traditional rental agreement with an exclusive right of first refusal option for later purchase on the home. It is a shortened name for Lease with Option to Purchase Contract.
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A lease-to-own purchase is a rental agreement that specifies how the buyer will pay for the residence in the future, so of course, the amount needed to purchase must be included. That price should.
A lease purchase agreement is an alternate way to buy or sell a home. Lease purchases help buyers who are having difficulty qualifying for a mortgage, and they help sellers get a better price in a.
Lease-option meant that at the end of the term, renters didn’t have to buy the house. They were contractually obligated to buy it in a lease-purchase deal — whether or not they could afford it. People now use the terms interchangeably, so be clear on exactly which contract you’re entering into [source: McLinden].
The Georgia Lease with Option to Purchase (Lease to Own) Template acts to solidify two separate agreements involving a property transaction, as well as a rental agreement, between landlord and tenant as one document. This contract may be very useful for a variety of reasons. For one, when done correctly a lease to own agreement may save both the landlord and the tenant a reasonable amount of.
The rent-to-own process allows potential buyers with poor credit scores, or who simply lack the large down-payments required to own a home, the opportunity to live in their home while working on improving their credit and saving funds.
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