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Lease Option Home Buying
Lease Option Home Buying - Trends
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Lease option sales were popular financing instruments in the late 1970s and early 1980s. They were primarily used as a way to circumvent alienation clauses in mortgages. Proponents claimed the sale was not really a sale because it was a lease; however, courts argued otherwise. Today, options to purchase, lease options and lease purchase agreements are three different financing documents. The variances are state specific and not all states have identical laws. Before entering into an agreement with a seller, buyers should obtain the advice of a real estate lawyer. The information below is an overview and is not meant to be ...
One of the most common ways to buy property is through creating an agreement with the seller whereby you lease the property from them, much like you would lease a car, with an option to purchase the property from them at an agreed upon price and by an agreed upon date in the future. Under this scenario, the homeowner maintains ownership (i.e. the deed) on the property, but you have an equitable interest (control) and the right to sub-lease the property to a prospective buyer and give them the option to buy from you. In fact, by lease-optioning a property. Here are our six different ... Read More
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