One thought on “How does renting with a Lease option work?”
The laws vary .. but simply put, it means you enter into a "lease option" contract which specifies that after a certain period of time, you purchase the property and your previous "rental" payments are put against that purchase. If you choose not to exercise your right to purchase, then you have just been a renter. If you choose to buy, then payments have been made toward the purchase. (Sort of like a down payment on installments). I’ve purchased property this way before with quite a good turn out. But you should have your lease option contract reviewed by an attorney to be certain of your right of backing out and any consequences from that.
The laws vary .. but simply put, it means you enter into a "lease option" contract which specifies that after a certain period of time, you purchase the property and your previous "rental" payments are put against that purchase. If you choose not to exercise your right to purchase, then you have just been a renter. If you choose to buy, then payments have been made toward the purchase. (Sort of like a down payment on installments). I’ve purchased property this way before with quite a good turn out. But you should have your lease option contract reviewed by an attorney to be certain of your right of backing out and any consequences from that.