Lease with Option to Buy

We all are familiar with what is a lease. A lease agreement is basically a contract between two parties, the lessor (landlord) and the lessee (tenant). The landlord lets the tenant occupy and use the property, for a consideration. This consideration is paid by the tenant to the landlord in cash or in kind. The consideration paid by the tenant to the landlord is known as rent. We also know that there are various types of leases. The lease may be fixed term, temporary, periodic, tenancy at will or tenancy at sufferance. But did you know that you also have a lease with option to buy?

Lease Contract with Option to Buy Homes
Yes! You can make an arrangement with your landlord so that he will transfer the ownership of the house to you at the end of the lease period. Of course, such terms must be specified in the contract deed and should be acceptable to both the parties to the contract. So, here's what you have to do to get a lease with option to buy homes.

• Do your research. Zero down on a city or an area of the city where you would like to live. Home buying is a very extensive decision and you have to consider various factors. You will have to see whether the landlords in these areas are offering a house on lease contract with option to buy. Deciding to get a house on lease with option to buy is an elaborate real estate investment decision, as you will live in that house for many years. Hence, do your research and make sure that the city/area that you choose is the one where you would like to live.
• Evaluate your own finances as well. Usually rent for a lease with option to buy home is much higher and comes with a hefty down-payment. So you might have to arrange your finances or apply for a home loan.
• Once you zero down on the area and your budget, start looking for homes. Go through the newspaper ads and ads on the Internet before getting a broker. Search which homes in the area are available on lease contract with an option to buy. Usually, you might just find a seller who wants to sell the house or just rent the house, as not many house-owners consider lease with an option to sell. So you could meet house-owners in the area of your choice and see if they are willing to consider lease with option to sell.
• Do your home work again. Think of what kind of terms the landowner will set, given that he consents to sell the house at the end of the lease. Most probably, he will ask for a much higher rent, a higher down-payment and a longer payment period. So if you have your bit prepared, you might just be able to wrestle out a better deal for yourself. On the other hand, being unprepared may disadvantage you, as you might end up agreeing to some unreasonable terms placed by the landowner
• Examine the lease document and check for anything in 'fine print'. Discuss the terms of the contract before signing.
• Make the regular payments. And at the end of the lease period (maybe any amount of time as may be agreed in the contract), you will receive the possession of the house. Congratulations! You are now a homeowner!

I firmly believe that getting a lease with option to buy homes is a great deal for anyone. If you think about it, you will realize that you will get such houses in some great areas. Why? Because, I feel, mostly the people who will agree to such a deal will be retired, heir-less homeowners. These people generally live in posh, uncrowded areas. So you might just end up getting cracking deal on your new beautiful house!