A lease with an option to buy is typically seen in housing where a party is unable to obtain financing today to purchase the home but expects to be in a position to purchase at some point in the future. The agreement may allow a certain portion of the rent to be applied to the purchase price which may or may not be pre determined and shown in the lease. The agreement may allow the tenant to contribute extra funds toward the purchase price or it may provide for a lump sum payment from the tenant to the owner at some point in the future. The option can be structured in whatever maner the two parties can agree on as long as it does not violate any applicable laws.
Like This Answer? (0) (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com