Which is better to do, a lease option or a land contract?
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Which is better to do, a lease option or a land contract?
When a lease option is done, does the landlord have to take care of the property or can their be a clause that states the renter has to take care of everything? Also if the renter decides to purchase the property, can the rent already paid go to the final price of the home? Can the lease option be set up to reflect that?
Asked on October 28, 2011 under Real Estate Law, Kentucky
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you are considering a lease option to purchase the rental that you are occupying, you can have a term that the landlord is responsible for maintaining the property and making all repairs to it.
Additionally, you can agree with the landlord that a certain percentage of the rent paid will be credited as part of the property's purchase price if the option to purchase is exercised.
Personally, I prefer an option to purchase where you have the opportunity to live in the property for a while before deciding to make the purchase as opposed to entering into a contract to buy right away.
I recommend that you consult with a real estate attorney to assist you concerning your desire to purchase the property you are writing about by way of a lease option or otherwise.
Good luck.
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