A lease agreement with an option to purchase allows potential buyers to move into a home immediately, with several years, to work on improving their credit score and/or save for a down payment before trying to get a mortgage. Of course, certain conditions must be met in accordance with the rental agreement. Even if a real estate agent supports the process, it is important to consult a qualified real estate lawyer who can clarify the contract and your rights before signing anything. Some leases require additional documentation in the form of supplements, disclosures and notices. Typically, the information is included in the original lease, while supplements and notices can be added to the lease later. I am a licensed attorney in Washington who specializes in trademark practice and has extensive trademark training and academic background. I am currently working with national and international companies seeking trademark protection in the United States. conducting trademark searches, providing legal advice, filing USPTO applications, and preparing responses to official records. I am passionate about trademark law and always look forward to helping small and medium-sized businesses promote their value through a registered federal trademark. If you have any questions or concerns regarding trademark/copyright and intellectual property licenses and need legal advice, please feel free to contact me so we can have a first conversation. 3. Now let`s look at the pros and cons of a lease: Leases usually have two possible end dates – either a fixed term or automatic renewal.
Fixed-term end dates indicate a specific period in which the lease is active. At the end of the lease, both parties must agree on an extension and either add an addendum to the lease that extends its term, or register a new lease. An automatic renewal will continue indefinitely, unless the landlord or tenant announces the termination of the lease. 7. Entry into rental properties. To avoid claims by the tenant of illegal entry or violation of personal rights, your rental or lease should clarify your legal right to access the property – for example, make repairs – and indicate how much notice you will give the tenant before entering. It`s often best to consult a contract attorney who can help you draft a lease that protects you and your tenant while meeting all of the state`s legal obligations. Submit a lease option agreement instead of a hire purchase agreement. Unlike a long-term lease, a lease offers a rental for a shorter period – usually 30 days. A lease with an option to purchase can be a great option if you`re an aspiring homeowner but aren`t quite financially ready. These agreements give you the opportunity to get your finances in order, improve your credit score, and save money on a down payment while “locking” the home you want to own.
If the money from the option and/or a percentage of the rent goes towards the purchase price, which they often do, you can also build up equity. You pay the rent for the entire rental period. The question is whether a portion of each payment will be applied to the eventual purchase price. For example, if you pay $1,200 in rent each month for three years and 25% of that amount is credited with the purchase, you will receive a lease credit of $10,800 ($1,200 x $0.25 = $300; $300 x 36 months = $10,800). Typically, the rent is slightly higher than the usual rate in the area to offset the rental credit you receive. But make sure you know what you`re getting by paying this premium. 6. Repairs and maintenance. Your best defense against rent withholding issues and other issues (especially on security deposits) is to clearly state your and the tenant`s responsibilities for repair and maintenance in your lease or lease, including: A tenant looking for a long-term lease may be put off by the flexibility of a monthly lease, which can lead to frequent rent increases or indefinite rental periods. For landlords, the costs of changing tenants more frequently should also be kept in mind, including the costs of advertising, filtering, and cleaning. Also, if your rental is located in an area with lower occupancy rates, you may have difficulty renting your unit for an extended period of time.