Lease Option/Lease Purchase. What's the difference? - Posted by Tim

Real Estate Investing
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Posted by Brad Crouch on April 26, 1999 at 16:24:53:

Tim,

This form and many others can be found in Bill Bronchicks course about the Nuts and Bolts of Real Estate Transactions. He also includes step by step instructions for filling out all the documents. Also he supplies a diskette containing all the forms so you can easily modify them to include your own name or company name, and whatever other details you wish.

The course is available on this site.

Good luck,

Brad

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Lease Option/Lease Purchase. What’s the difference? - Posted by Tim

Posted by Tim on April 26, 1999 at 11:45:02:

I am currently working on a deal and have tentatively offered the seller a Lease Option. He said he will not option it but rather will agree to a Lease Purchase. He wants assurance that at the end of 3 Years that the property will be sold rather than face the possibility that I will walk out on the deal. He has finished depreciating the property and is looking to move on. Besides this “negative” anything else I should be thinking about? Is it essentially the same as a land contract? Anybody have any sample or boilerplate forms for this type of Transaction they would be willing to e-mail to me?

Sorry if this is a newbie question (this will be my first deal if it comes together) but I would like the benefit of the vast wisdom out there before I jump in.

Thanks,

Tim

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Re: Lease Option/Lease Purchase. What’s the difference? - Posted by Lonnie Turnre

Posted by Lonnie Turnre on April 26, 1999 at 19:21:05:

Bill has a sample form at his web site.

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Re: Lease Option/Lease Purchase. What’s the difference? - Posted by Brad Crouch

Posted by Brad Crouch on April 26, 1999 at 12:34:19:

Tim,

If you use a purchase contract with a “liquidated damages” clause, you effectively have an option rather than a “purchase contract”. Because if you later decide to walk away, the most you can loose is the money you have already put up.

Brad

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Re: Lease Option/Lease Purchase. What’s the difference? - Posted by tim

Posted by tim on April 26, 1999 at 14:37:02:

Thanks Brad. Would you happen to have an “investor friendly” version of this type of contract including the liquidated damaged clause or know where I can get one. If can be e-mailed to me, that woudl be great.

Thanks again,

Tim