A lease is a landlord-tenant relationship wherein the tenant takes occupancy of the property and agrees to pay a designated monthly amount for a set period of time. In the case of a lease with option purchase, the seller agrees to sell the property to the buyer for a fixed purchase price during the term of the lease. Generally, a certain amount of the monthly rental payments can be applied toward the purchase price. The “option” refers to the buyer’s right to choose whether to purchase the property.
The advantage of a lease with option to purchase is that if the tenant fails to make payments, the buyer may pursue the eviction process rather than the foreclosure process, which takes much less time. In the case of owner financing, a lease with option to purchase is advisable if the buyer does not have a substantial amount of money for a down payment.
If you’re interested in arranging for owner financing as the buyer or seller of a property, please give us a call at (727) 847-2288.