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The financial crisis has created a massive negative impact on the world market. It has shown a large consequence on the real estate market too where higher number sellers or homeowners are using inventive financing to sell their property. It has become tremendously difficult to get a genuine buyer to purchase the property from the seller. The buyers are even facing hardshipd as they are unable to get the satisfactory financing plan to purchase that property. To help both the parties, there are effective agreements available in market. Thus, the single option left with the sellers or home owners is to sell their property by following useful financing plans which is helpful for both the parties. Lease Purchase Agreement is an effective financial plan. In this kind of agreement, the homeowner can rent the property to the customer till the closing date. In this agreement the buyer should be genuine and must be interested in the property offered for sale. But Though, the customer is not instantly prepared to purchase the property and is capable to close. The term period is normally between 12 to 24 months, but it is negotiable. However in this agreement the buyer is required to pay the purchase deposit which is credited in the buyers down payment. But it is a non-refundable deposit in case if the buyer fails to make the payments in future. The purchase deposit is 3% of the purchase price, and is considered quite reasonable for the customer. The amount of purchase deposit is also negotiable. This sum could be considerably high or low, and this is quite natural. Normally, majority of the sellers and buyers fix the purchase price of the property in advance. But the property holder relies on the purchaser to make the payment in cash or loan so that the deal is over before the deadline jointly agreed by both parties to contract. As per the rules the purchase price increases if the contract is extended. The Lease Purchase Agreement is helpful for both, the property holder as well as the customer. Buyers' are quite satisfied as they get enough time to save a large sum for down payment as well as it helps them to clear the past dues or may be he gets enough time to sell his old property thereby helping him make money for new purchase. A part of the purchaser's monthly rental payment is credited in the purchase price, this is termed as "forced monthly saving plan". The amount that is credited per month is negotiable between both the parties. The sellers are happy as they get the best price for their property that is presently available. This happens as the contract allows the buyer to close as per his convenience. The monthly rental fees can even extend and the customer is required to bear all the maintenance costs and repairs of the property, as he is the holder of the property in the future. The buyer does not have to pay any mortgage loan against the vacant property. Know more about Lease Purchase Agreement and about lease purchase at leasepurchasemadeeasy.com
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lease option, lease purchase, real estate, buyer, seller,
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