How does selling your home with a lease option work?
10 points to whoever provides the best answer and a reference.
I need to know where to find the contracts, when the title transfer takes place, whether you file the contract with a title company, and how long they normally take. What is a normal down payment? How long is the contract normally?
Your best bet is to drive to a title company and get the paperwork you need. If it is a good company they will even help you understand how to fill out the forms right.
It is a basic lease that you commit the person to for at least 2 years. You can use the stand deposit 1 1/2 months rent. In the lease you agree on the price of the house, and agree that a portion of the rent paid will go into the deposit or credit of the balance.
The lease will not include escrows unless you figure them into the monthly rent. You cannot increase the rent if taxes or insurance goes up and you are responsible.
When they do the final transaction, the bank will ask for a two year rent history with canceled checks, money orders, or direct deposit into you savings account. The later of the three is the best. A hand written receipt will not work. Cash does not work.
You can also to a land contract which is along the same ideas, but they are responsible for taxes and insurance, and you can record the payments to the title company and credit bureau’s although I never see that happening. Most land contract holders are lazy in bookkeeping. (no offence) .