A form of financing alternative, lease/options involves both lease and option contracts. Signing a lease allows people to possess and enjoy a property. Leasing affords numerous benefits to the lessor. By signing a lease, they are not obligated to pay property taxes or perform major repairs. Additionally, they may rent the property to other persons, though the contract with the landlord may establish rules against subletting.
An option gives lessors the right to purchase the property at the end of a contractual period. The owner must give the lessor the choice to buy, though the lessee can refuse the opportunity. Moreover, individuals may assign the right to their option to other persons. Money paid during the initial lease may be put towards the purchase price.
Used in many fields, lease/options occur regularly in real estate. Persons interested in utilizing this method should contact a professional who can draw up the necessary paperwork. Both leases and options can be written in a myriad of ways, so the two parties should develop contracts that take into account their needs.
About the Author:
Possessing experience in the pharmaceutical and real estate industries, Kevin Wessell shares his knowledge at business seminars that cover a myriad of topics. One subject often taught by Wessell is lease/option real estate strategies.