Is A Lease To Buy Contract Worth Signing

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Is a Lease-to-Buy Contract Worth Signing?
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• A lease-to-buy contract is an option that isn't
  new, but is becoming more popular when you're
  renting a high-rise condo or loft.

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• Leasing a property before you buy can have
  advantages for you as a potential buyer.

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• One of the biggest advantages to the buyer and
  the seller is the flexibility of the contract.

It's important for all parties to read,
understand, and sign the contract.
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How A Lease-To-Buy Contract Works
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• An agreement between a tenant and owner that
  includes an option to buy allows the tenant to
  purchase the property while the lease is valid.

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• Agreements of this type are usually drawn up for
  duration of twelve to eighteen months.

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• However, the duration of the contract may be
  longer at the discretion of the buyer and seller,
  especially if the buyer needs additional time to
  have the funds available for the mortgage.

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Buyer's Exclusive Rights
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• The tenant and owner agree to the terms before
  the contract is signed.

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• While the contract is in effect, the renter has
  an exclusive option to purchase the property.

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• Lease-to-own agreements allow the buyer to put
  down less than a traditional down payment.

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• The amount is usually between one and five
  percent. The renter pays the seller a deposit and
  the monthly payments go toward the purchase of
  the property.

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Benefits For Lease-To-Purchase Buyers
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• The lease-to-buy contract is an opportunity for a
  buyer to save money for the purchase when they
  don't currently have the funds for a traditional
  down payment.

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• The contract allows a buyer with a low credit
  score to increase their score and resolve any
  credit problems before the lease expires.

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• The higher the credit score, the more likely the
  buyer is to be approved for a mortgage.

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• The advantage of a lease-to-buy contract is that
  the payments the buyer makes build equity in the
  property.

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• If the buyer is approved for a mortgage, the
  property can be purchased at any time while the
  contract is valid.

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• Entering into a lease-to-purchase contract is a
  good way to determine if buying a condo or loft
  is the best option.

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What Sellers Need To Know
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• A lease-to-purchase contract can be beneficial
  for the seller when the market is slow. The
  contract allows them to increase their cash flow.

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• The lease-to-buy agreement is a good option for
  real estate developers who are having problems
  leasing or selling units.

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• Some real estate developers offer incentives to
  potential buyers. The broker may offer an option
  to buy at a set price if they purchase the condo
  or loft within a year of signing the lease.

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Ensuring A Successful Transaction
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When entering into a lease-to-purchase contract,
it's essential that all parties understand the
contract.
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It's advisable to have a real estate attorney go
over the terms of the contract before it's signed.
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The property should be inspected and all
necessary repairs should be made before the
contract is finalized.
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All parties should be clear about who will pay
for the maintenance and repairs to the property.
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If there are any tax liens, it should be
disclosed in the contract. The buyer should be
aware of the amount due for taxes, HOA fees, and
insurance.
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• If you are looking for a condo to buy in Arizona,
  We Know Urban Realty will help you find the
  perfect place.

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• Their realtors are experts when it comes to urban
  living. Visit the site to see what's available
  right now www.weknowurban.com

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• Will Daly, Broker
• We Know Urban Realty, LLC
• 834 E Claremont Street, No 3
• Phoenix, AZ 85014
• [phone]
• Email Will_at_WeKnowUrban.com