| There are people who are desperate to become | | | | Market values for houses are dropping these days. If |
| homeowners. On the other hand, some homeowners | | | | the buyer and seller gets into this agreement, the |
| are desperate to dispose their properties. But because | | | | original purchase price of the house would not be |
| life is hard and the economic situation is not getting any | | | | affected with this condition.o In terms of the house |
| better, these people would probably have to wait in | | | | quality: If seller is lucky enough to have a lessee, who is |
| vain before their dreams will be realized; or they can | | | | determined to purchase the property, chances are the |
| pray. Buyers can pray that somewhere between | | | | house will be treated well.o In terms of the option fee |
| tomorrow and eternity, they will have a good paying | | | | and rent premiums: Option fees is the amount the a |
| job so that they can afford to purchase a home. On | | | | lessee would pay to get the right to purchase the |
| the seller's side, they can pray that there will be people | | | | home after several years. If he or she decides not to |
| knocking on their doors and willingly buy their house no | | | | pursue the purchase, the option fee goes right into the |
| matter how much the cost is. | | | | pocket of the seller. On the other hand, the amount |
| However, life is filled with options. Good news to the | | | | credited to the rent premium will be forfeited every |
| buyers and sellers, this is not the end of everything. | | | | time the renter pays late. |
| There can be a perfect solution for both parties to | | | | One disadvantage for the seller lies on the agreement. |
| meet their goals and that is getting into a Lease to | | | | Because it is a contract, the homeowner could not sell |
| Own Agreement. | | | | the property to a buyer, who is willing to purchase the |
| Defining lease to own | | | | property right there and then. |
| Lease to own is the agreement wherein a person | | | | Possible effects to the Buyer |
| rents a property but gets an option to purchase it at a | | | | The advantage of lease to own is greatly for those |
| specified time. In here, renters would have to pay an | | | | who are trying to redeem their crumbling credit |
| option fee and rent premium that would take part as a | | | | standing. Most of them may be denied of mortgage |
| down payment upon purchase. This will also explain | | | | loans or do not have enough money to purchase a |
| why rent is slightly higher in this transaction. | | | | house in full. Getting into this agreement would mean |
| However, in every business transaction, there are | | | | they could get enough time to prepare the payment in |
| always pros and cons. To help you see the different | | | | purchasing the house. On the other hand, timely |
| angles of lease to own, read its possible effects to the | | | | payments of monthly rent can help them redeem their |
| buyers and sellers. | | | | credit. |
| Possible Effect to the Seller | | | | The only problem is the lease might be too expensive |
| From the seller's standpoint, lease to own agreements | | | | for them. Moreover, if they do not go as planned, they |
| is quite advantageous to them for the following:o In | | | | can lose much money from the option fees and rent |
| terms of protecting the purchase price of their homes: | | | | credits. |