Lease purchase agreements are a kind of lease agreements that allow the lessee to make periodic lease payments towards the purchase of the property. The considerable changes that occur in this business led to new transaction polices and norms. Lease purchase agreement is one such change. It allows the lessee to decide whether he is interested in purchasing the property or not. Until then, the lessee can reimburse some amount of money that is agreed upon the lease payments.
During the entire period of lease, the owner cannot sell the property during the lease period. This scheme entices those people who are interested in buying properties for their use. Lease purchases are more preferable for people who do not qualify for loan or mortgages.
These agreement ceases to exist after certain lease duration. After the expiry of this period, the tenant has the option of buying the property. Also, after the expiry the right of the owner to sell the property gets restores. The owner has the option of collecting money from the lessee at regular intervals in lieu of betterment of house. The owner can also avail refinance loan against the property.
These agreements should carefully be written. These are written by experts or mortgage agents, who have complete knowledge on the subject. They will make you aware of all terms and conditions of the agreement. You can discuss the rules and regulations as well. Their advice is also of great value. The relationship that tenant and owner share is also narrated by them. They will also verify your eligibility to qualify for a lease purchase agreement. The financial worth of the property along with either detail on the appraisal of the property can be discussed.
Some people even opt for real estate lawyers to ensure that all the agreement is being written according to the various norms that are laid but the law and there is no biasness sin these agreements. No doubt, that different states have got different laws and it might become slightly confusing for you. A lawyer who is qualified in real estate arena will make you aware of entire procedure that one has to go through while entering a lease purchase agreement. Even the minutest of the details should be discussed properly in lease purchase agreement.