What Is A Rental Purchase Agreement

A lease is a written agreement between a landlord and a tenant that gives the tenant the opportunity to purchase the property at a later date. The nature of this type of real estate transaction can be very different, as virtually all the terms of a leasing purchase are negotiable. For example, they may or may not include a fixed price. If this is the case, the price may be the estimated value of the property at the time of purchase or another agreed value. Together with the purchase price, the lease agreement sets the amount of the deposit and the schedule of the deposit. The parties may agree that a portion of the rent paid will be paid for this deposit. Of course, this would usually mean an increase in the amount of rent each month. But some buyers may prefer it as a method of forced saving for a down payment. The money in the option is non-refundable.