is a lease to buy contract worth signing
TRANSCRIPT
A lease-to-buy contract is an option that isn't new, but is becoming more popular when you're renting a high-rise condo or loft.
One of the biggest advantages to the buyer and the seller is the flexibility of the contract.
It's important for all parties to read, understand, and sign the contract.
An agreement between a tenant and owner that includes an option to buy allows the tenant to purchase the property while the lease is valid.
However, the duration of the contract may be longer at the discretion of the buyer and seller, especially if the buyer needs additional time to have the funds available for the mortgage.
The amount is usually between one and five percent. The renter pays the seller a deposit and the monthly payments go toward the purchase of the property.
The lease-to-buy contract is an opportunity for a buyer to save money for the purchase when they don't currently have the funds for a traditional down payment.
The contract allows a buyer with a low credit score to increase their score and resolve any credit problems before the lease expires.
The advantage of a lease-to-buy contract is that the payments the buyer makes build equity in the property.
If the buyer is approved for a mortgage, the property can be purchased at any time while the contract is valid.
Entering into a lease-to-purchase contract is a good way to determine if buying a condo or loft is the best option.
A lease-to-purchase contract can be beneficial for the seller when the market is slow. The contract allows them to increase their cash flow.
The lease-to-buy agreement is a good option for real estate developers who are having problems leasing or selling units.
Some real estate developers offer incentives to potential buyers. The broker may offer an option to buy at a set price if they purchase the condo or loft within a year of signing the lease.
When entering into a lease-to-purchase contract, it's essential that all parties understand the contract.
The property should be inspected and all necessary repairs should be made before the contract is finalized.
If there are any tax liens, it should be disclosed in the contract. The buyer should be aware of the amount due for taxes, HOA fees, and insurance.
If you are looking for a condo to buy in Arizona, We Know Urban Realty will help you find the perfect place.
Their realtors are experts when it comes to urban living. Visit the site to see what's available right now: www.weknowurban.com
Will Daly, BrokerWe Know Urban Realty, LLC834 E Claremont Street, No 3
Phoenix, AZ 85014(480) 510-8755
Email: [email protected]