What are the pro’s and con’s of a lease purchase?

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What are the pro’s and con’s of a lease purchase?

If we sold our home on a lease purchase agreement and the couple puts a down payment but we are holding the mortgage. They will be making monthly payments to us toward the purchase can we specify the time we need them to buy or get a loan on the lease purchase? The home is not paid off as of yet, we still owe (184k) but I have received an offer of employment from out of the country and we want to go. We just refinanced prior to me getting the offer of employment. What are the pro’s and con’s? By the way we are asking $190K

Asked on February 23, 2012 under Real Estate Law, South Carolina

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The pros and cons of the lease option that you have written about is that there is no guarantee that you will close escrow with the tenant buyers (con). I suggest that you set a time period for the lease option to be accepted in writing.

It is best if you have a real estate attorney assist you in your matter.

The pros are that you will not have to pay real estate commissions if the sale goes through, you have a possible buyer in place to buy the unit while you are out of the country and as such, the chances of having a tenant damage the property is lessened.


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