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how is a lease purchase agreement structured

  • February 11 2009 - Tucson
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Answers (3)

Really, a Lease Purchase can be written based on any agreed upon specifics between the Buyer/Tenant and Seller/Landlord.
  • February 16 2010
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WIth a lease purchase, you agree on the sales price, put a deposit into escrow (relatively sizeable, i.e. $5-10k), then pay rent until you actually purchase.  You can negotiate a portion of the rent to apply to your down payment.  This can be a risk to both sides, though, so do talk at length with your Realtor about the pros and cons!

  • February 03 2010
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Hi Alabaster Fred,

Usually a lease-purchase agreement is simply a lease agreement with a 'first right of refusal' clause at the end of the lease that gives the leasee the option to purchase the property at a price determined at the beginning of the lease.

Typically a more substantial down payment is required at the beginning of the lease and the terms are negotiated up front also.

Hope this helps!
  • February 12 2009
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