Keisha you should really get an attorney to help you with this very important and expensive situation. If you don't know which paper to sign, you also won't know what to put in that paper and how that will affect you.

It's also a little unclear as to whether the sales price is $40K or if that is what the profit the seller wants in his pocket after all of the closing costs are paid.

Then you say all of this was in the lease contract he sent you. So are you buying it? renting it, leasing/purchase, or what? If you are going to pay the taxes, you should OWN the house, not lease purchase it since you will get no benefit from that.

Get an attorney or a realtor, it will save you from mistakes that you will not easily rectify after you sign a piece of paper. You need to make sure you are on the same page as the seller, and it doesn't appear to me that you are.

Good luck

Why would a contract for deed be in the equation? It may not give you the buyer much protection at all. I would highly suggest you go over your options with a real estate attorney, or perhaps you may be able to call up your local escrow office for advice.

If you and your husband can afford to purchase the home outright, then a purchase contract would more preferably be the best deal for you. If their still will be seller financing, that can be written up in the purchase contract if there are no mortgages. If there are, there may be other ways around it, so you would be better off referring also to a local real estate professional that is familiar with investment and other ownership strategies.

Keisha,
I would suggest you talk to a Realtor and/or a real estate attorney. It sounds like they are trying to get you into a lease option. If you can ... buy it now and avoid the lease option.

Keisha,

Talk to a good real estate attorney. If you don't have one, I can refer you to one.

It sounds as if you may be referring to a lease option? If you have capacity to buy now I would suggest a purchase contract and not a lease option. Make sure the property is properly priced and it is in an area that will appreciate and something you can afford.

If they are suggesting a lease option with the above terms it does not sound as if there is much of an advantage to you. Be careful here. You may want to talk with a local Realtor.