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Video Guide on Residential Lease Purchase Agreements management

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Commonly Asked Questions about Residential Lease Purchase Agreements

A New York rent-to-own lease agreement allows a tenant to rent a property while also having an option to purchase during the lease term. The landlord and tenant will commonly negotiate the terms of the sale prior to entering the lease.
The difference between a lease purchase agreement and a lease option agreement is that the lease option only obligates the seller to sell. A lease purchase agreement commits both parties to the sale barring bdocHub of contract or the buyers inability to secure a mortgage.
A lease purchase agreementalso known as a rent-to-own or lease-to-own agreementlets someone rent a property for a specified period of time with the promise to purchase it at the end of the lease term. The owner is contractually obligated to sell the property to the renter when the end of the term hits.
In a lease purchase arrangement, a tenant enters into two agreements simultaneously - an agreement to purchase and a lease. The tenant agrees to purchase the property, but operates under the lease until the terms of the purchase agreement are fully satisfied.
Gives the seller time to find the right buyer: With a lease-purchase option, the seller can take their time finding the right buyer, rather than feeling pressure to sell their home quickly.
With a true lease, the municipality typically relinquishes the asset but may purchase it at a price that reflects its residual or market value. With a lease-purchase, the municipality retains the asset.