Try a Lease Purchase for Your Next Real Estate Deal
By: Julia Aidan
Submitted: 2010-02-21 06:52:04 | Word Count: 532
Purchasing a house is a big dream of millions of eyes. People love to have a house of their own, but due to higher interest rates and time-consuming loan approval procedures their dreams are often shattered. Thus, almost all the people are looking for simple ways to buy their dream home. As there is an answer to every question, similarly, a Lease Purchase Agreement is huge relief for people who want to purchase their own home. With this agreement, the seller can lease his property to the potential buyer till the agreement closes. However, the buyer must be a good person who is highly interested to purchase the property from the seller, but doesn't have sufficient money to pay instantly. Usually, this agreement is valid for 1 to 2 years but the buyer can close the deal before the expiry of the contract. However, the maximum period is discussed between the buyer and the seller.
In a Lease Purchase Agreement, the buyer has to deposit some amount, known as purchase deposit. This sum is nothing but his down payment that can not be given back to him in case he doesn't win the case. Three percent of the property price is fixed as amount for purchase deposit. Also the amount of purchase deposit is negotiable among the buyer and the seller. It can either be quite high or very low. Normally, the purchase price is set by the buyer and seller in advance. It is assumed that the buyer will make the necessary payments before the term period of the contract is over. The buyer can either pay in cash or through loan. And if the agreement is increased by the seller, the purchase price becomes higher as per Lease Purchase Agreement.
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The buyer as well as the seller is greatly benefited with this agreement. A buyer has sufficient time to gather more for down payment, repay his past dues or to sell his property. Because the monthly payments is ascribed as property amount, the buyer gets a forced saving plan. The seller attains the current market price of the property that is usually greater. This is due to the fact as he allows some flexibility to buyer on closing date of the contract. Market rents might be higher and the buyer is responsible for the repairs and maintenance costs. Buyer is the actual property owner in future. Moreover, the seller is satisfied as he doesn't need to pay any mortgage on an empty property!
Thus, this type of agreement is quite useful to the seller as well as the buyer. If you too are thinking to purchase a property through Lease Purchase Agreement, then you can always connect to the net. You can get the entire information about this agreement on the internet. In the present difficult economy, the buyer finds hard to purchase a home and the seller doesn't get a good buyer for his property. Thus, a Lease Purchase Agreement has helped millions of people to attain their dream home easily.
