{"id":4927,"date":"2018-02-21T03:32:30","date_gmt":"2018-02-21T03:32:30","guid":{"rendered":"http:\/\/www.realestatewords.com\/?page_id=4927"},"modified":"2022-08-15T13:24:33","modified_gmt":"2022-08-15T13:24:33","slug":"lease-purchase-agreement","status":"publish","type":"page","link":"https:\/\/www.realestatewords.com\/lease-purchase-agreement\/","title":{"rendered":"Lease-Purchase Agreement"},"content":{"rendered":"

Lease-Purchase Agreement Definition<\/h2>\n

A lease purchase agreement<\/strong> is a legally binding contract<\/a> between a seller and tenant<\/a>-buyer granting the latter the right to buy the property at a predetermined price within a specified time frame.<\/p>\n

Explanation<\/h2>\n

A lease purchase agreement combines a right of first option to purchase and a rental agreement into one.<\/p>\n

These types of agreements are frequently used in the rent-to-own<\/a> community because it offers the benefits of renting and provides renters the option to purchase at a predetermined price.<\/p>\n

The agreement defines how long the tenant buyer has to exercise the option to purchase<\/a> the property at the predetermined sale price.<\/p>\n

In order to make the contract legally binding, the tenant buyer must pay a non-refundable option fee<\/a> to the seller.<\/p>\n

The payment of the option fee gives the tenant buyer the exclusive right to buy the property for the predetermined price on a specific date.<\/p>\n

If the tenant buyer is unable to secure a mortgage by the time the lease expires, they forfeit their entire option fee.<\/p>\n

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