LEASE OPTION: An agreement between two parties in which the party who owns the property sells to the second party the right to purchase the property at a future date. The second party lives in or subleases the property until the lease option expires.
When you purchase the Lease Option Package you will receive each of the following, all of which will be stored on-line by ContractAuthority for you to create and revise as many times as you like for one year.
The Option Agreement gives the buyer the right to purchase the property without the obligation. The Option can provide great benefits for buyers and sellers and is a flexible tool to create true win-win deals. As a lease option seller you can often negotiate for above market rent rates and a sizeable non-refundable option fee, traditionally 3-5% of the purchase price. The tenant/buyer is typically responsible for maintaining the property and generally takes better care of the property than the typical renter as they are planning on purchasing in the future. As a lease option buyer you can move into or sublease a home that you are interested in purchasing at a fraction of the cost of buying traditionally. You can also negotiate to have the option fee as well as a portion or all of your monthly rent payments apply toward the purchase. A fixed purchase price can become very valuable in the future.
A good contract can help you win in court. A great contract can keep you out of court. Our Lease is a powerful tool in managing your investment property. It has been developed by tough litigation attorneys and professional real estate investors, who have both extensively studied and personally lived the challenges and issues that can arise in a landlord/tenant relationship. By utilizing years of professional experience from all sides of the transaction, our Lease is designed to anticipate potential challenges and provide the Landlord with the ammunition needed to effectively meet and address them.
Donâ€™t underestimate the necessity of a thorough rental application. Once a tenant falls behind in rent or damages your property, the only remedy you have is to begin eviction proceedings and sue in court for damages. Even if you win, collecting on a judgment is often difficult. The best way to avoid costly tenants is to effectively screen them. Our Rental Application has been developed by experienced landlords and attorneys to provide the information and verification you need to make informed decisions about who to accept as your tenant, as well as information you will need to enforce any judgment you may receive in the event of a default.
If there is any indication that a tenant may not be able to meet the rent obligations in the future, the landlord may require someone else, such as a parent, to guarantee the rent payments. This is similar to a lender getting someone to â€œco-signâ€ on a loan. The effect of the Guarantor Agreement is that the guarantor is legally responsible to make all payments under the Lease if they are unmet by the Tenant.
Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips, and dust can pose health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant women. Before renting pre-1978 housing, landlords must disclose the presence of known lead-based paint and/or lead-based paint hazards in the dwelling. Tenants must also receive a federally approved pamphlet on lead poisoning prevention. With each package you will received the required forms necessary to fulfill this obligation.
Some states require disclosures in addition to the Lead Paint Disclosure. With any Lease Package, you will receive additional disclosures necessary under your stateâ€™s law.
"I like that the contract can be used to meet the buyer's needs or the seller's needs and can be customized for that purpose. It's a solution that is much more affordable than hiring a real estate attorney to draft customized documents."
Rob Becker, Real Estate Broker and Multi-Million Dollar Producer
"Really simple way to get powerful contracts customized for your needs and a great resource, especially for people new to the investing game. Very convenient that everything is state-specific. Wherever you're doing business, you don't have to worry about translating to your states specific laws.
...I would probably spend between five and eight thousand dollars to get the same quality of job done."
Brad Palmer - Litigation Attorney