What is a Rent to Buy Lease Option?
A Rent to Buy Lease Option is the lease of a property with the option to purchase it. The Transaction is coupled with a non-refundable Lease Option Deposit which is credited to the purchase Price if the Buyer exercises the option to purchase and is retained by the Seller if not. The Option period is one to three years during which time the Buyer saves up the downpayment needed to purchase. The Seller can either provide Seller Financing for the Sale, if willing and able, or the Buyer can obtain a loan.
The Rent to Buy Transaction is becoming a valuable option for many forced to place their dreams on hold following the real estate recession. Owners still struggle to justify selling into a discounted marketplace, believing that if they hold a little longer, value may rebound. And buyers whose savings dwindled or cannot qualify for a loan with stricter lending guidelines, defer their dream of home ownership.
Fortunately, there's a solution for both parties. Marilyn has created a Rent to Buy strategy that serves the needs of both sides. We call it the Market Modulated Lease Option because you have the option to have the market determine the home's price later, not now. In this way, the Seller gets the appreciation hoped for and the buyer does not pay more than the house is worth.
As the national expert on creative real estate solutions and the author of two books on the subject, Marilyn and her staff offer the most complete and up-to-date information and services for Rent to Buy sales. Click on any of the links to the left under Rent to Own to learn More.
Do it Yourself Tools
Click here to see our tools so you can facilitate your own Lease Option Transaction, including:
" The Lease Option Coach
" The Lease Option Agreement
" Additional Documents related to the Lease Option
We Can Do it For you
Or, click here if you want to consult with us or have us prepare your transaction from beginning to end.
This page was revised in June 2016.