Which is better to do, a lease option or a land contract?

UPDATED: Oct 28, 2011

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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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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