BEST ANSWER
FIRST ANSWER
OK, lease option benefits the the renter/buyer not the seller, so most will not do a lease option. They are more likely to do a lease purchase. The difference is that with a lease option, you lease the home and you have the option after a set period to tell the owner that you would like to buy the home and at that time you negotiate the sale. With a lease purchase, you negotiate the lease and the purchase terms at the same time. The lease is set for X months, the security deposit typically turns into the earnest money (or if you don't buy the home or damage it, is forfeited to the seller as is a regular security deposit/earnest money), the building inspection, title work and survey are done and negotiated up front before you move in, occupancy inspections are done, etc then you behave like a regular tenant and the owner behaves like a regular owner. when you reach the point where you are about a month to two months away from the purchase date, you get a loan commitment letter, and we finalize the deal. If the deal falls through, then you have to move out unless the seller agrees to allow you to continue to leave there as a renter. Typically the lease and purchase agreements state that if the rent isn't paid, you have to leave immediately since the home will need to go back on the market. But a valid purchase contract with a set price is determined up front before you ever move in with a lease purchase.
Sat Mar 14 2009, 14:50