Try a Lease Purchase for Your Next Real Estate Deal
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By :
Jamie Hanson
Submitted
2010-02-20 17:48:20 |
Purchasing a house is a big dream of millions of eyes. People wish to have a house of their own, but due to increasing interest rates and lengthy loan processing procedures their dreams are generally devastated. So, a lot of people are trying to find out easy ways to own a home of their own. As there is an answer to each question, similarly, a Lease Purchase Agreement is great respite for people who want to buy their own home. With this agreement, the seller can lease his property to the potential buyer till the agreement closes. However, the client needs to be a nice person who is keenly interested to buy the property from the seller, but doesn't have sufficient funds to pay off immediately. Though, the actual validity of this contract is 1 to 2 years, however, the buyer and seller can dissolve the agreement before the actual term. However, the maximum period is discussed in between the buyer and the seller.
The obligation of a Lease Purchase Agreement is that the buyer has to deposit some amount termed as purchase deposit. This amount is nothing but his down payment that can not be returned back to him if at all he loses the agreement. Three percent of the property price is fixed as amount for purchase deposit. Also the sum of purchase deposit is agreed among the buyer and the seller. It can either be quite high or very low. Generally, the purchase price is set by the buyer and seller before hand. It is assumed that the buyer will make the necessary payments before the term period of the contract is over. The buyer can either pay in cash or through loan. And if the agreement is increased by the seller, the purchase price becomes higher according to Lease Purchase Agreement.
The buyer as well as the seller is greatly benefited with this agreement. A buyer gets sufficient time to gather more funds, repay his past dues or to sell off his home. Because the monthly payments is ascribed as property amount, the buyer gets a forced saving plan. The seller attains the current market price of the property that is normally greater. This is due to the fact as he allows some flexibility to buyer on closing date of the contract. Market rents may be higher and the buyer is responsible for the repairs and maintenance costs. Obviously, the buyer is the future property owner. Moreover, the seller is happy since he doesn't need to pay any mortgage on an empty property!
Thus, this type of agreement is quite useful to the seller as well as the buyer. If you too are thinking to buy a property through Lease Purchase Agreement, then you can always connect to the net. You will find all the essential information about the agreement through reliable online resources. In today's difficult economy, the buyer finds difficult to buy a house and the seller doesn't get a good buyer for his property. Thus, to enable both the parties, Lease Purchase Agreement is a great boon that has helped millions worldwide.
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Author Resource:-
Buy a property easily on a Lease Purchase and know what it is at http://www.leasepurchasemadeeasy.com
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