Lease Purchases are becoming increasingly popular in today's market.  With the banks making it increasingly difficult for buyers to obtain a mortgage, buyers and sellers are finding other means to accomplish their goals. 

Very few sellers have enough equity to offer any substantial amount of seller financing, so many people are finding the benefits of a lease purchase agreements. In recent years, buyers barely needed a job to get financing, but those high risk programs have all disappeared.  It has become very apparent to most buyers that they are going to have to fix their blemished credit and save for a down payment in order to purchase a home. The fall out of the mortgage companies has also left many sellers in a bind who want to sell but just can't wait for a well qualified buyer.   

This situation is causing many buyers and sellers to think outside of the box and consider a lease purchase agreement as an alternative.

Many people have heard the term lease purchase, but most people do not know exactly what a lease purchase agreement is.  A simple definition is:  Lease Purchase - A contract to purchase a home (with an extended closing date) coupled with a rental agreement.    

While any contract is negotiable, it is very common for a lease purchase to have a non-refundable deposit, a time limit for the purchase date, a deductible on repairs (buyer is responsible for the first X dollars of repairs), and some even offer a rent credit where some amount of the monthly rent is applied to the buyer's down payment.

A lease purchase may be mistakenly called a lease option.  There is a distinct difference between a lease purchase and a lease option.  A lease purchase includes a written purchase and sale agreement that has been signed, sealed and delivered.  The sale must go through or there may be penalties applied to party in default.  On a lease option, the party that is renting a house (or other property) has purchased a legal right or option to purchase the property at a later date.  In a lease-option, the buyer does not have an obligation to purchase it. 

So, which is a better solution, the answer depends on what you are trying to accomplish.  Each situation is very different and requires a different approach.  It is important to understand that the goal of a lease purchase or lease option is to eventually get to a sale of a home.  Both instruments can get the buyer there but the lease purchase makes the parties much more committed up front. 

If you are a homeowner that is at their wits end trying to sell your home, The Dalie Management Group can help you market your home for lease-purchase and guide you through all of the necessary documents to minimize your risk. 

On the other hand, if you wish to purchase a home, but the banks are just not quite ready to offer you a mortgage, come to us and we will help you find and negotiate a lease/purchase contract.