Lease purchase agreement is a useful method to allow a tenant to lease the house and buy it after the end of lease period. This method is of use to people who are uninterested in taking a mortgage due to low credit scores.
This contract is also helpful to those persons that do not qualify for a mortgage due to a poor credit score or other reasons. With the changing scenario of the real estate market, it has become essential to offer more innovative policies and methods to tenants.
A lease purchase agreement is just one such popular method which has been successful in the real estate market. It combines the house purchase and lease agreement together. It makes for a nice combination of the two agreements.
Such an agreement often lasts for a very long period of time. Once the contract period has expired, the tenant can buy the house. If you want to go for such an agreement, you should take the help of a reputed mortgage agent.
The mortgage agent can help you in several ways. He can help you with an accurate appraisal of the property so that you know whether you are paying the right price or not. He can also tell you whether you qualify for the agreement or not.
Before making a lease purchase agreement, you should also consult a good real estate lawyer who can help you prepare an agreement which suits both the owner and the tenant. This is to ensure that there is no trouble afterwards.
You can consult an experienced lawyer about your lease and purchase agreement but keep in mind that the real estate laws are state specific. Your lawyer should have knowledge about the local laws in order to help you out.
It is important to make such a Lease Purchase agreement carefully and consult a good lawyer to have all terms and conditions clear. Thus you can use this system to own a house without going for a mortgage.