The Basics Of Lease Option That You Must Know
It is the twenty-first century where you can find various options to fulfil your dreams. People who dream of becoming a homeowner but lack financial resources also have many options that they can try. Even if you have failed to qualify for a mortgage, you can buy a home that you love. Different companies offer lease options in Atlanta.
If you are interested in buying a home in the near future, then in this article, you will find the most convenient option to materialize this plan. Here the details of lease options will be discussed but first, you must know that the lease option is different from option to purchase and lease agreement.
What is the option to purchase?
In case of an option to purchase, the buyer pays an amount to the seller of the home an amount to confirm that he is going to buy the home within a certain time limit. The purchase price of the home can be decided at the same moment.
What is a lease purchase?
Just like the option to purchase in lease purchase in Atlanta, the buyer pays money to the seller to have his right to buy the home at the end of the lease term. However, the purchase price of the home is usually higher than the market price of the home.
What is the lease option?
The lease option in Atlanta means the buyer of the home pays a certain amount of money to the homeowner so that he can reserve his right to pay the home by the end of the lease time period.
Rental Period & Rental Amount
In the case of the lease option in Atlanta, the buyer decides with the seller the timeframe in which the buyer can live in the home as a tenant and pay rent just like any other tenant does. However, the amount of rent can be higher because usually a proportion of the rental amount is added towards the purchase price of the home that the buyer is intending to purchase. The term of the lease option can be negotiated between two parties. Usually, the lease period varies between one to three years. But the buyer can also negotiate this period with the seller.
Property Deals During the Lease Period
Once the lease option agreement has been signed, the current homeowner cannot sign the property deal with anyone else to sell the property. He is liable to sell that home only to the person who has signed the lease option agreement with him. And the buyer can either buy the home during the lease period if he succeeds in arranging the money. Otherwise, in usual cases, the buyer buys the home at the end of the lease period. Still, the buyer is not liable to purchase the home. If the buyer fails to arrange the remaining purchase price of the home, he can either leave the home and the lease agreement or he can renew the lease agreement depending upon his agreement (if the buyer is given the option to renew the lease option in the agreement, only then he can renew the contract).
Benefits of Lease Option
By now, you will probably be thinking that why do people need a lease option in Atlanta, when there are other ways to buy the home. There are associated many benefits with the lease option agreements that urge both the buyer and the seller to go for this option to buy the home. these benefits include:
· It is affordable for the buyer
· The seller gets rent as well as the purchase price in the end so, he gets to earn more money on the same property.
· The buyer does not have to move homes till he becomes the homeowner.
· The seller keeps getting the rent on a regular basis till the lease option agreement expires.
· If the buyer cannot arrange money in time, he can avail the option to renew the lease option agreement.
· If the seller agrees to extend the lease period, he can earn money from the same property.
· The buyer does not need to pay the lumpsum purchase price at a time.
· The seller gets rent that is more than the usual rent rate in the market because a proportion of this rent amount is credited towards the purchase price of the home.
If you are up for a lease option, and you are looking for real estate companies that can offer the best lease to own program in Atlanta, then Dream America is the platform that you can trust. You can call their experts to get details about their lease or rent to own home options.
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