Profile picture for 1234jlc

How does a Lease Purchase work?

What does it mean if a home is available for Lease Purchase? How does this work? Are there any drawbacks to this?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 02 2011 - US
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (5)

That's a great question and you've gotten some terrific advice from the agents below.  I've got to differ with the agent that said there are no drawbacks, however.  I recently blogged on rent-to-buy and lease-options at http://www.mimiandmartini.com/.  Click the link below for the article and Happy House Hunting!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 03 2011
There will be three parts to a lease option.  You'll have your lease, the option and the contract.  There isn't one way to work them out.  You and the owner will decide on that.  I personally think it is best to go ahead and rent from them.  You do not have to do the 'option to buy'.  When a home is listed that way it is to let you know that they will be willing to entertain that as well as renting.  Once you are renting then you will know if this is the home or area you wish to buy.  You can at any time contact the owner and let them know you would like to go that route.  Good luck!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 03 2011
You can also negotiate to have a portion of the rent monies you have paid to become part of your deposit on the home.  There really isn't a drawback as long as you have a good Realtor write the lease.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 03 2011
As part of a lease purchase, often times, you will also be required to put down a non-refundable 'down payment' for the option to buy.  If you decide to buy, there aren't really any draw backs. You get the chance to spend some time in the home and get a real feel for what problems may be present before purchasing.  If you decide not to buy, you've lost your down payment, but you've actually saved yourself from losing more money by purchasing it outright in the beginning only to find out you didn't really want it.  I'm not a lawyer, and each situation is different, but lease options do have some very good points.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 03 2011
A lease purchase is also known as a lease with an option to buy. You are given a lease, and at the end of the lease, you are given the right of first refusal to purchase the property. You are not obligated to purchase it, but may if you wish.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 02 2011
 
Related Questions
I upload the photos which are upright but when posted to the rental site, the photos are sideways.
Profile picture for rjenfantino
Latest answer by rjenfantino
December 28 2013 | 12 answers
  • Asked by fitu01
  • In Rentals
  • May 28 2013
Unauthorized Posting on Zillow
  • Asked by flapjack
  • In Rentals
  • 35 minutes ago
Anyway to break a lease renewal which begins next month?
Profile picture for Mack McCoy
Latest answer by Mack McCoy
3 hours ago | 3 answers
Where is the best school district south of Tulsa?
Profile picture for user49544745
Latest answer by user49544745
3 hours ago | 2 answers
RENT in the Northland
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.