Q & A: Lease Options

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  1. How do lease options work and what are the benefits?
  2. What is a lease option?
  3. Where can I get more information on leases with the option to purchase?

How do lease options work and what are the benefits?

A lease with an option to purchase provides buyers with the opportunity to lease a home with the potential to buy the home at a later date. Buyers who do not have enough cash for a down payment and closing costs are sometimes drawn to lease options as it can offer them an alternative means to home ownership. Stipulations surrounding lease options, such as purchase price, purchase date and rent application, will differ for each transaction and should be researched prior to entering into a lease option contract.

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What is a lease option?

A lease with an option to purchase provides buyers with the opportunity to lease a home with the option to purchase the home at a later date. Buyers who do not have enough cash for a down payment and closing costs are sometimes drawn to lease options as it can provide them with an alternative means to home ownership. Stipulations surrounding lease options, such as purchase price, purchase date and rent application, will differ for each transaction and should be researched prior to entering into a lease option contract.

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Where can I get more information on leases with the option to purchase?

Your real estate agent is often the best person to speak with for more information on lease option homes. Generally, a lease with an option to purchase allows buyers to lease a home with the option to purchase the home at a later date. But, the lease/purchase terms can be different for each listing, and therefore it is important to speak with a real estate professional prior to leasing a lease-option home.

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