With Lease Purchase Contracts, the property holder| is permitted to lease or rent his home to the buyer till he closes. A Lease Purchase Agreement is usually used when the potential buyer is interested to purchase the home but is not yet ready or is competent to close immediately. Thus, with this agreement, the buyer can lease the home till he closes.

A Lease Purchase Contract allows the buyer to close somewhere around 12 to 24 months, anyways, the contract also allows the buyer to close it earlier. It is a flexible contract where the maximum term period is flexible. This contract is helpful to the property holder as the customer has to fulfill one provision, that is, he has to make a non-repayable fee of 3% of the purchase price, this is called as purchase deposit. This money shall be further adjusted against the buyer's down payment of the property. This money is a normal purchase deposit. Further, this purchase deposit amount can be discussed between the customer and the property holder. This amount can be considerably higher or lesser and this is quite common.

Most of the property holders as well as the buyer's bother about the fluctuations of Purchase price of the property; they are jumbled if they have to consider the purchase price of present value or the future value. Well, the customers and property holders both choose to decide the purchase price before hand. The buyer can close with loan or cash before the timeframe jointly settled by both in the agreement and the property holder in fact relys on the buyer for closing. Thus, if the property holder agrees to increase the term of the agreement, the Lease Purchase agreement invites for rise in the purchase price.

A Lease Purchase Agreement is advantageous for both, the and the customer. It is beneficial for the buyer as he gets enough time to gather huge amount for the down payment, clear the earlier dues or gets time to sell off some other possessions. Customers also enjoy “forced savings plan” and this is as a part of monthly rent is generally adjusted in the purchase price. The amount fixed for monthly rents can be discussed between both the parties of agreement as per the rules of agreement. This agreement |is beneficial to the as they enjoy the present high market prices of the property due to the flexibility given to the customer on the closing dates. However, there are chances that the monthly rentals might be higher than the market rents and also the customer has to tolerate all the expenses of maintenance and upkeep of the property. This is so because, the customer is the future owner of the property and it is natural that the is relieved from paying mortgage on the property that is unoccupied.

Thus, a Lease Purchase Agreement is quite beneficial and secured for both the parties, that is, the customer and the in the agreement. However, each factor related to the property must be examined thoroughly before both the parties sign the deal.