A Lease Purchase Agreement Can Help a Seller Get Top Dollar for Their Property
By: Julia Aidan
Submitted: 2009-09-02 10:59:57 | Word Count: 454
A Lease Purchase Agreement Can Help a Seller Get Top Dollar for Their Property
Under a lease purchase conformity the tenant is obliged to buy the property after the lease period terminates. Thedeal can also be extended. This system closes the deal normally, smoothly and neither the purchaser nor seller getting affected.
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The advantage goes to the seller as he gets up front payment from the buyer. The deposit capital is forfeited in case the buyer backs out of the contract. The deposit for purchase of the property is equivalent to three percent of the property valuation. The selling price is determined initially by them and may have a paragraph for any variations in the future.
In the lease buying agreement the seller has a larger degree of benefit, because if the buyer needs to extend the period of agreement than the seller has an advantage of asking for extra money.
During all these period under the agreement the buyer is bound to pay all necessary dues related to the property such as taxes and other levies The tenant is under obligation to keep the property in perfect condition and carry out repair works as and when necessary. This agreement is thus in advantage to both the buyer and the seller
The buyer during the contract period has the advantage to stay in the property and evaluate the valuation of the property and if found unsuitable may opt for another one, by foregoing the deposit money. By the agreement he gets an advantage of being relieved from huge down payments. However, he is obliged to pay a security deposit.
The seller can opt to cancel the agreement in case of default payment. They wait for the occasion for three successive months after which they deprive them of their deposit money and call of the agreement.
The buyer also has the option to make the payment before the expiry of the lease agreement and own the property. Since the request of buying properties is larger the seller can demand top dollar for the property.
In some situations the buyer requests for an extension to the agreement. This is an prospect for the seller to go for valuation hike and ask for more money. The seller gets an advantage of the market price and additional depost of money
Whatever be the situation, the lease purchase agreement is beneficial, both to the buyer as well as to the seller. Since many people are looking for rent they take the benefit of lease purchase agreement.
