Cumming GA Lease Purchases and Rent to Own
Cumming GA Lease Purchases and Rent to Own
One of the items that most Cumming GA home buyers in Forsyth County GA have no idea on how it really works is “Lease purchases!” To desperate home buyers and sellers there are loads of advantages, but there are also some major disadvantages that cannot be overlooked. Let me go over some very basic concepts of today’s lease purchase, most especially because these purchasers also don’t understand that at the end of the term, they must buy the house or vacate, and forfeit their earnest money and applied monthly escrow. A lease/purchase contract is not an “option to buy contract” where you put down non-refundable money and at the end of the term if you don’t like the house, schools, neighborhood, or whatever you opt, you don’t have to go through the final purchase process:
1. The deposit money is nonrefundable because no one else can purchase the property during the term of the contract.
2. The buyer cannot assign the lease purchase agreement (unless the seller approves and they won’t). This is not a rental sub-lease.
3. Buyers will generally be responsible for maintaining the property and paying all expenses which includes taxes and insurance.
4. The buyer is obligated to buy.*
*If the buyer defaults, the buyer will not receive any portion of the option money (deposit), the portion of the lease payments that were paid which would have gone toward down payment, and the seller has the right to sue for specific performance and report your default to the credit bureaus. Before you sign a lease purchase contract, talk to an attorney.
