Lease Purchase
The potential buyer agrees to an option fee, rental premium and monthly rent. The current owner/potential seller agrees to sell the home at the current asking price of $185,000.00 if purchased in the first 12 months of lease agreement. At the date of the 12 month anniversary to the date of the 24 month anniversary the sale price will increase at 2% to $178,500. At the date of the 24 month anniversary to the 36 month date the sale price will increase 4% to $182,000.
The option fee and rent premium are viewed differently by buyers and sellers. To the buyer, they are part of the equity in the house they will soon own. Fully anticipating that they will exercise the option, the only cost is the interest they would otherwise have earned. To sellers, however, these payments are the best guarantee that their houses will sell; if they don’t sell, the payments are retained as income. That the benefit to the seller generally exceeds the cost to the buyer makes the lease-to-own deal a possible win-win.
Option Fee:
The potential buyer agrees to pay seller an option fee to be credited to the purchase price. The option fee’s are as follows:
12 month lease 2% down is required =$3,500
· If buyer agrees to a 12 month lease and does not exercise purchase option at or before 12 months or leaves before the lease is up, buyer will forfeit $3,500 option fee.
24 month lease 3% down is required = $5,250
· If buyer enters a 24 month contract and determines to leaves before 12 month renewal, buyer forfeits entire $5,250 option fee.
· If buyer enters into a 24 month contract and decides to leave after 12 month renewal, buyer forfeits $3,500 of $5,250 option fee and $1,750 will be returned to buyer.
· If buyer does not exercise purchase option at or before 24 months, buyer loses $5,250 option fee.
36 month lease 4% down is required = $7,000
· If buyer enters into a 36 month lease and leaves before 12 months, buyer will forfeit $2,000 of $7,000 option fee and $5,000 will be returned to buyer.
· If buyer enters into a 36 month lease and leaves at 12 month renewal, buyer will forfeit $3,500 of $7,000 option fee and $3,500 will be returned to buyer.
· If buyer enters into a 36 month lease and leaves at 24 month renewal, buyer will forfeit $5,000 of $7,000 option fee and $2,000 will be returned to buyer.
· If buyer does not exercise purchase option at or before 36 months, buyer loses $7,000 option fee.
Rental Premium:
Rental premium is a $100.00 monthly premium paid with rent to be credited to the purchase price. If the purchase option is not exercised, the buyer loses the rent premium.
Rent:
Rent is to be paid monthly in the amount of $1200. This amount will cover mortgage, mortgage insurance, property taxes, interior homeowners insurance, HOA fees and city water, sewage and garbage. Tenant will be responsible to pay for gas and electricity. The HOA fee includes access to the clubhouse, fitn
INTERESTED IN RENTING:
Available May 10, 2014
1 year contract commitment required
$1200 a month + $1000 deposit ($800 of which is refundable)
Includes rent, HOA, water, sewage, cable, garbage
Renter is in charge of gas and electricityess facilities, pool and hot tub, Comcast cable, exterior homeowners insurance, snow removal, and lawn care.
