In a Lease with Option to Buy, you lease the property from the owner, typically for a fixed period, often 1-3 years. During this time, you have the option, but not the obligation, to purchase the property at an agreed-upon price. A portion of your rent may be credited toward the eventual purchase.

“Option” means you have the choice to buy the property, but you’re not obligated to do so. If you choose not to buy, you can simply walk away after the lease ends. “Obligation” would mean you are required to buy the property at the end of the lease term.

Yes, there’s often an upfront non-refundable fee, known as the option fee. This fee gives you the right to purchase the property during or at the end of the lease. If you decide not to buy, this fee is not refundable.

The purchase price is typically agreed upon and specified in the lease agreement when you sign the lease with option to buy. This price can be based on the current market value or a predetermined formula, and it’s meant to remain constant during the option period. Upon the option expiring, the price can be adjusted up or down.

The agreed-upon purchase price insulates you from market fluctuations. If property values increase, you could benefit from buying at a lower price. Conversely, if values decrease, you might decide not to exercise the option, avoiding a potentially overpriced purchase.

Rent is usually set around market rates. A portion of the rent may be credited towards the purchase price if you choose to buy the property. However, the specifics vary and should be detailed in the lease agreement.

In many cases, yes. However, the terms regarding property improvements should be outlined in the lease agreement. It’s crucial to clarify this aspect before making any modifications. Most structural modifcation is not allowed.

Yes, you can choose not to exercise the option to buy. However, the upfront option fee you paid is non-refundable. Make sure you’re committed to the purchase before entering into a lease with an option to buy.

Yes, you’re free to secure financing anytime during the lease period if you decide to exercise the option to buy. It’s advisable to start the financing process well before the lease ends to ensure a smooth transition.

If you can’t secure financing and can’t purchase the property, you will forfeit the option fee and any accumulated rent credits. It’s essential to be financially prepared before entering into this arrangement.

Maintenance and repair responsibilities are usually outlined in the lease agreement. The tenant is responsible for ALL maintenance and repairs.

The landlord can’t sell the property to someone else since you have the exclusive right to buy the house during the lease option period. This is one of the main benefits of a lease option rent to own.

A lease with option to buy can be a good option if you’re not ready for immediate homeownership due to financial or other reasons. It gives you time to save for a down payment, improve your credit, or test the property before committing to purchase.

Rent To Own Homes Mississippi Gulf Coast allows you to exercise your right to sell the house during the lease option period. By ensuring payment of the agreed price, which in this example is $150,000, you can sell the house for a higher price, such as $180,000. We will receive the agreed amount of $150,000, while you retain the difference of $30,000.