What do you tell people who ask about Lease to Purchase transactions?
770We are warned against them by TAR and their legal department. I understand the pitfalls associated with them. But the general public still seem to think it is a good arrangement (even those with a real estate background). Do we as a professional group need to educate the public on this topic?
4 answer(s)
About 6 years ago
What I hear often is a lease to own. I explain that a lease to won and a lease with option to purchase is two different things. I do advise them to seek legal counsel but I do tell them that a lease to own has very strong cons associated with it. A lease with a option can be a good thing but make sure you have you get it in writing in lease your fee if a purchase is done. There may be reasons that you may need to ask more questions bout as to why they are considering that option. At that time you as a well-educated and knoweledgeble realtor can assist them and they are part of your pipeline for later if there are resources you can refer them to that will make the purchase easier.
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DislikeAbout 6 years ago
I tell clients that I do not perform those transactions and the should contact an attorney. They however can request the first right to revision so that if the owner decides to sell the property, they will be allowed an opportunity to purchase the home. But my services are for strictly sale or strictly lease.
About 6 years ago
I have closed a lease with right to purchase. And so have others in my office. I believe there is confusion among realtors on what is allowed and what is not. There are a few programs out there that operate well within the laws of the state. I'd be more than happy to help.
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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