Jeff’s Carlsbad Blog for First Time Home Buyers

Lease with Option to Buy

Posted in Due Diligence,House Hunting,What do I Buy? by Jeff Dowler on April 13, 2007

I have been asked about obtaining a lease with an option to buy, so I thought a few words might be helpful.

Simply, this arrangement is when you, as a tenant, enter into a relationship and contract with the landlord that gives you the option to buy the home or condo at some agreed-upon point in thefuture. Typically you would agree on a price as well. In some agreements the rent you pay can be applied toward the down-payment on the option to buy.

It is important to keep in mind that an option is simply that. You are not necessarily bound to proceed with the contract unless terms in the agreement require that you do son. however, it also means that the seller is not bound to sell you the property either – it is an option.

If you run across a property that is listed this way and you are interested, make sure you understand the terms and conditions fully, and consider the implications of this arrangement. They are not particularly common and are not for everyone. Check with your agent. You might also consider consulting an attorney.


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