Rent To Own Fees

A Rent to Own 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 frequently one to three years during which time the Buyer saves up the down payment 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 The Rent to Own Lease Option is document heavy and consists of two phases, all of which are described below.

FEES

Phase One: Establishing the purchase, option and lease terms. My fee is $4300 to represent buyer and seller, preparing the Purchase Agreement, Option Agreement and Lease and facilitating their terms.

For $475 more if the parties choose, I prepare a Memorandum of Lease Option to be recorded on the property. 

Phase Two, Exercising the purchase option, facilitating the sale, or cancelling it. (paid when the option is to be exercised): 

My fee is $2700 if the Option to Purchase is exercised, at which time I prepare a Notice of Exercise of Option and facilitate the sale of the property to the buyer. 

My fee is $475 to prepare a Cancellation of Option Agreement. 

My fee is $375 to prepare a Release of the Memorandum of Option Agreement if a Memorandum was recorded. 

THE DOCUMENTS 

The Purchase Agreement states the terms of the sale and all contingencies. Seller disclosures and inspection rights are given to the Option Purchaser. 

The Option Agreement gives the potential buyer the right to purchase based on the purchase agreement terms. A non-refundable (typically) option deposit is made which is a credit to the purchase price if the option is exercised. 

The Lease contains the terms the property will be leased at until the option is exercised or expires and (typically) has an extra monthly non-refundable payment that goes toward the option.  These options can all be customized. 

The Memorandum of Lease Option is recorded on the property and secures the Option Agreement rights (optional).

Notice of Exercise of Option is buyer’s notice that they are exercising their option to proceed with purchase of the property. 

Cancellation of Option Agreement is the buyer’s notice that they do not wish to exercise their option to purchase. 

Release of the Memorandum of Option Agreement is recorded on title and releases the Memorandum of Option Agreement previously recorded.

Email Marilyn by clicking on the orange Contact Us link to the right with questions or if you have questions or are ready to begin.

We typically represent both sides in a transparent transaction where all communication is by email with all parties copied.