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LEASE PURCHASES HOW DIFFICULT AND WHERE R THEY IN TEXAS

  • July 07 2013 - Montgomery
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Answers (1)

Profile picture for MicahHarper
It depends on what you mean by lease purchase, that term is often used to refer to both (1) owner finance or (2) a lease with some manner of purchase right attached during the term.  

For an owner finance, make sure they own the property free and clear and are not trying to sell it to you with their previous mortgage still in place (called a wrap around mortgage).  If it is free and clear, it's not difficult to do, just hire an experienced Realtor to help you. In this instance, you own the property from the day you close on it and there is no actual lease in place.

If you're looking to lease with an option to purchase, that can be done in many ways (all of which should have a duration of 1 year or less).  (1) Sign a 1 year lease with a Right of First Refusal.  This will give you the option to purchase if your landlord gets an offer, on the same terms as that offer, but is not an obligation to purchase ever.  (2) Sign a 1 year lease with an Option to purchase at a set price within a defined period of time.  This could be something like "at $100,000 within the first 6 months of the lease" or "at Fair Market Value as determined by a licensed appraiser at any time during the term of this Lease."  (3) Sign a 1 year lease at an above market rental rate, with the additional rent being applied towards the down payment.  If you decide to purchase, you will have save up your down payment during the lease.
  • November 20 2013
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