As is the case in the lease, the option fees and accumulated rental credit are not refundable if the tenant/buyer decides at the end of the tenancy agreement. The tenant/buyer is exempt from the responsibility of the sale and the owner/seller is responsible for finding new tenants. A lease has as much weight as selling a house. Once a home purchase agreement is entered into, neither party can withdraw, including the seller. If a seller tried to withdraw from a lease, he would not be allowed to sell the property. At the time of the contract, ownership of the property is transferred to the buyer. The seller has contractually agreed not to put the house up for sale in the meantime or thereafter. Therefore, any other contract would be null and forth, unless a judge finds that the lease is also null and private. But as we`ve seen, from your point of view as an investor, the leasing options are brilliant – so you might decide that the juice is worth it. It`s not easy: the haystack-to-haystack ratio is not in your favor. Once you find it, a leasing option will be a whole new concept that you will need to explain. And they won`t fall in love with the idea, because it`s not the solution of their dreams (even if it`s the only option they have). When negotiating the terms and conditions themselves, the most important points are: they are in fact two separate agreements that are grouped into one, and it is easier to understand them if you separate them: a clean rent that you offer to a tenant is also called an option tenancy agreement.
In this agreement, a tenant rents a house or condo from you. At the same time, it includes an option to purchase your property for a certain period of time, usually one to three years. The tenant usually pays you an option fee and makes additional rent payments during this period. You can allocate the option fee and the additional rent to the tenant`s down payment. If you pay back these payments if the tenant does not purchase the property, depends on the wording of your special tenancy agreement. A leasing option works the same way. In the case of a rental option, the buyer (the lessor) pays the seller (the owner) the option money for the subsequent right of sale. The money from the leasing option can be important. The buyer also agrees to lease the property to the seller for the duration of the lease for a predetermined rental amount. The terms are also negotiable, but as an option, it is usually 1-3 years old.