Aug
12
“What’s Cooking” in The High Desert Real Estate Market – Rent to Own and Lease Options
Posted by whatscookinginvictorville under Financing, First-time Homebuyer, For Buyers, For Sellers, General Information, Sellers Tips
A rent to own or lease option is a solution for some buyers and sellers… not all. Rent to own also known as a lease option is not always a well understood process. Comprising of two main components:
Loosely or poorly structured lease options can leave the seller, buyer or both in the middle of a misunderstood legal contract. A properly executed lease option should consist of at minimum:
A detailed consideration of exposure is always in order with this type of contractual agreement. In general both parties stand the potential of great up and down sides depending on the direction of the market. Lease options without a sales price, in an up market, are potentially one sided (in favor of the seller) and harmful to the buyer. While in a down market, if the buyer walks, the seller could end up with an asset worth substantially less than when it was originally contracted in the option. Careful consideration before entering into this type of contract is advised and the professional guidance of a real estate attorney highly recommended. For more information see Rent to Own Pro-Con For all of your High Desert Real Estate needs visit our web site. |



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