Lease/Purchase ?

[bailey06]

What is the name of your state? Florida
My home has been on the market for 2 years, with only one offer that we turned down, we have decided to move, either let it sit for a few more months on the market or rent it out. We put a lease/purchase option on the house. We have someone interested in doing a lease purchase (not an option), he will pay us rent, $10,000 non-refundable deposit that will be freed up right away and will buy our house when he sells his. My agent is working on getting all the terms into the agreement, is there any advice you can give me on what I should include in the terms? Thank you!

 

[FlyingRon]

You need to make sure you have a definite term, and the statement as to what the rent credit towards the purchase is and whether any of that is ever refundable.

However, it's a good deal for both parties usually. If the agent is not well versed in these you might suggest getting someone else (perhaps a lawyer) to go over the agreement.

 

[bailey06]

Lease/Purchase

The person has a house to sell in another state, they want a 2 year lease, because they are not sure when the house will sell. My agent would like to put a condition that they must close on our house within 45 days of closing on theirs. I'm concerned with how long it will take and how it will affect the market value of our home. I think my agent will try to cover all the bases, I'm trying to figure everything out myself also as to what other terms should be in there. Thanks!

 

[HUD-1]

A few thoughts: How do you know if they will be able to qualify for a mortgage 2 years from now? (Do they have good credit now?) Perhaps they don't sell their house and they let it go into foreclosure. A lot of "what ifs" can occur over a two year period. It sounds like you are bailing them out of their situation as much as the other way around.

 

[CharlotteInvest]

A few thoughts: How do you know if they will be able to qualify for a mortgage 2 years from now? (Do they have good credit now?) Perhaps they don't sell their house and they let it go into foreclosure. A lot of "what ifs" can occur over a two year period. It sounds like you are bailing them out of their situation as much as the other way around.

The original poster stated that at the end of the term the buyer will sale the property and cash the owner out then.

You should be careful about letting your agent draft such agreement. If the agreement isn't on a state approved agreement by your states real estate commission, your agent could be in violation of state and federal laws for practicing law. Usually state approved agreements are fill in the blanks with multiple choices to choose from.

It might be worth the $150-300 to get an attorney to draft the document for you. At least you won't have to wonder if the document is bullet proof. Remember agents only took a 90 hour class pertaining to real estate, they didn't go to practice to law.

 

[HUD-1]

I wouldn't ASSUME that the sale is a cash sale unless that is stated in the contract. If that is the case, then you may want to see proof of this equity.