Actually, no. We needed up walking away. Hated to do so...But, felt they kept playing games. The owner had a open house coming up, and I believe he was stringing us along before he would sign the papers. So, we walked away, and they didn't do anything with the open house. They have been asking if we are still interested.

Wed Jun 25 2008, 07:20

How did things turn out? Did you get a deal you are happy with?

Wed Jun 25 2008, 06:15

Often the tenant/buyer in a lease-option is feeling insecure because they are currently unable to qualify for a mortgage. There are other reasons tenant/buyers pursue a lease-purchase, but current lack of down payment or credit dings are common reasons.

The terms and conditions of a lease-purchase or lease-option are negotiable. You need not simply roll over and accept the terms that a seller delivers in a counter. In negotiations, there is the theory the party who has the least to lose has more control. But, it also comes down to perception. Do you believe you have more to lose than the landlord/seller if this deal were to fail to come together? How would the landlord/seller answer the same question? In a lease-option negotiation, a tenant/buyer may believe their options are few, and therefore they easily acquiesce to a landlord/seller’s counteroffer terms. A good Realtor who can ferret out more information about the seller/landlord motivation and needs can help you in negotiations. Have a candid discussion w/ your Realtor about your options and alternatives. It will help you in determining your willingness to grant concessions or meet counters.

Deborah Madey - Broker
Peninsula Realty Group - New Jersey

Tue Apr 15 2008, 19:58

Pretty much everything that you mentioned is standard, with the possible exception of the offer redo. Lease Purchases vary from seller to seller, so whatever guidelines this seller wants - will likely be different from another. Remember, you can make a counter offer. If they are selling on a lease purchase, then they are likely "motivated" and hopefully flexible enough to meet your needs.

Tue Apr 15 2008, 18:44

Pacita,

I just gave you a thumbs up! That was an excellent web site and I bookmarked it. It verifyed what I had said and added a few things (like the 1 to 3 years) that I meant to mention.

Well Done

JD “Dan” Weisenburger, GRI
Broker-Associate REALTOR®
Vanguard Realty, Inc. GMAC Real Estate

Tue Apr 15 2008, 18:40

Tara,

Lease purchase works somewhat like this (your mileage may vary)

You find an owner that is willing to do a lease option.

You agree to a given price to pay for the house at the end of the option period (typically for 1 year)
Sometimes the price is said "To be determined by appraisal) at some given date or actually agreed to via the “crystal ball method” which predicts what the seller would be able to sell the house for and what the house would appraise for at the end of the year.

You agree to an option fee which becomes the owners immediately and there is no refund should you not perform on the contract which includes not being able to qualify for a mortgage at the appropriate time.

You agree to a monthly rent. Typically this monthly rent is $100.00 more than the market value for rents in the area.
The extra $100.00 is placed in escrow on your behalf every month that the rent is in the landlord’s hand on the first of the month. On the 2nd of the month the rent is late. When you pay on the 2nd you still pay the rent including the extra $100 but the extra goes immediately to the landlord.
The goal is to have $1200 coming to you at the closing when you complete the sale. Should you not complete the sale that $1200 goes to the landlord again

The lease option contract is not renewable and it will not extend “month to month”

There can be other stipulations in the contract.

At our brokerage the policy is that all lease option contracts must be written by an attorney, never the agent and never the optionor or the optioned.

That they changed the contract is not surprising. What I recommend is that you agree to the terms you each want in the contract and have it drawn up by an attorney.

In Florida all real estate contracts must be in writing to be enforceable by any and all parties. While verbal can be done, it is only worth the paper it is written on.

The risk for the Seller is that the buyer won’t be able to secure a mortgage and the seller has to start over to find a buyer/tenant.

The risk for the tenant is that they wont be able to secure a mortgage and they will loose the money they have already invested.

In a properly done lease option contract both sides should be able see a gain and also be taking a risk.


For further information regarding lease option consult a real estate attorney

JD “Dan” Weisenburger, GRI
Broker-Associate REALTOR®
Vanguard Realty, Inc. GMAC Real Estate

Tue Apr 15 2008, 18:26

Tara

It is necessary to have real estate agreements in writing. So this is a "given." It's for the protection of both parties if executed fairly and correctly. I hope you have a realtor representing you.

Did the sellers counter your offer with different terms than what you offered? Was the offer structured as a lease-purchase with an option to buy? The whole premise (and promise) of the option is that you have a certain period of time to decide whether or not you want to buy the property.

With that promise is a certain amount of money that you're putting down that may be applied towards the downpayment. But there should also be a provision for the buyer/tenant to opt out of buying. Whether the option money is refundable is one of the things that should be clearly spelled out in the agreement.

Here's a link to one of the most informative sites regarding real estate in general. This is about lease-purchase. Hope this helps
http://homebuying.about.com/od/financingadvice/qt/091007_lea…

Good luck!

Tue Apr 15 2008, 18:11