Lease Purchase Agreement

A lease purchase is an arrangement, in real estate circles, where a property owner and a person wishing to use the property in question get intohouse an ordinary lease agreement; but with an option for the person wishing to use the property (now a lessee) to purchase the property upon the end of the lease. It is one of the ways of doing the property business that had almost been forgotten during the just ended real estate boom, but which have since been remembered… and turned out to be rather popular, as the property market goes through a rather tough stretch.

Like all other real estate contracts, the contract underlying the lease-purchase has to be in written form. That contract is often called the lease purchase agreement, and it is normally written by the lawyer retained by the property owner and the lessee to legally oversee the transaction.

For starters, a good lease purchase agreement is one that is fair to both parties involved. This is a lease purchase that has no bias. Surprisingly, it is not very easy to find such a lease-purchase agreement. Most tend to be somehow biased in favor of one party, to the detriment of the other party.

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