lease purchase and sale agreement with 3, 3900 down for five yrs. , does that mean i own it in five years

Offer date, for purchase and sale
In Buying Property - Asked by debra e. - Mar 25, 2017
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Answer(s)

Juanita A.
Broker/Agent
Hollywood, FL

Maybe...we would need to read the entire agreement to read carefully. In general, a lease-purchase agreement is an option contract where you pay a fee that gives you the option to buy at a specific time in the future, while occupying/using the property in the meantime. You can chose to buy or not, but the seller of the option is bound to sell, as long as you also fulfill your commitments under the contract.

Mar 27, 2017
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Christopher L.
Broker/Agent
Phoenix, AZ

DOES IT MEAN I OWN IT IN FIVE YEARS?
I agree 100 percent with Anita. Also look to answer the following questions:
• Do any of the lease payments go towards the purchase price?
• How is the purchase price calculated at the end of the lease?
• Can you extend the lease and if so what happens to the purchase price/option?
• Once you exercise the option to purchase, how much time do you have to close?
• If you miss a lease payment, do you have a period to reinstate the lease?
Good Luck! Chris

Mar 28, 2017
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