Lease purchase option payment forfeiture - Posted by s.b.wells

Posted by chandra on March 06, 2003 at 11:26:32:

First of all be carefull with your wording.
“Lease Purchase” and “Lease Option” are two
different things.

Lease Purchase = more billateral agreement(must buy)
Lease Option = unillateral agreement(may buy)

You need to clarify ahead of time in detail with them
that their option consideration will be forfeited
if they decided not to purchase the house.

Tell them:“It will be gone if you don’t exercise the
option! Do you have any question?”

If they exercise then it will be applied to the
purchase as part of the downpayment. But don’t tell
them it’s a downpayment. And don’t use the word
credit. Use “applied” to purchase price instead.

Lease purchase option payment forfeiture - Posted by s.b.wells

Posted by s.b.wells on March 06, 2003 at 11:01:49:

I am a novice real estate investor interested in pursuing an investment using a lease puchase option method. I am curious whether any other investors utilizing this method have run into any problems once the tenant-buyer has decided not to purchase the home and consequently forfeits his/her option payment! Do you find any resentment from the tenant-buyer?
Any recommendations on how to securitize the investment from potential “disrepect”? Thanks.

Re: Lease purchase option payment forfeiture - Posted by GL - ON

Posted by GL - ON on March 06, 2003 at 11:34:50:

Several people have posted problems of this kind. If you do an archive search you should turn them up.