Posted by Brad/AZ on 8/23/07 2:14pm
Msg #207270

Lease to Purchase Contract example

Would anyone happen to have an example of a lease-to-purchase contract that I could view? My In-Laws asked me to write one up for them so it would help a lot if I had something I could refer to for specific language. I found a bunch of websites that charge for it, but I'm uber-cheap right now and would prefer to not pay for it.

Thanks,

Brad

Reply by ToniK on 8/23/07 2:29pm
Msg #207277

3/21/2011

This third-party post has been removed by Notary Rotary at the request of ILRG.

Reply by Brad/AZ on 8/23/07 2:33pm
Msg #207279

Toni, thanks a bunch for your quick response! This looks like a great start.

Brad

Reply by John_NorCal on 8/23/07 3:15pm
Msg #207287

Brad, just hope that nothing comes back to bite you in the a$$! Doing this like this for family can tend to back fire because of expectations that may or may not be real.

Reply by Signing_Doc on 8/23/07 3:25pm
Msg #207290

ditto the last sentiment...that's the reason we had to move

to Arizona. The "jerks" we were "leasing to purchase" from...stopped paying the mortgage company and we were out on our ears WITHOUT our earnest deposit. Be careful!!!!

Reply by Becca_FL on 8/23/07 7:53pm
Msg #207327

If it's family, why do a lease to purchase and not a contract for Deed, Purchase Money Mortgage or a Land Contract? Mind you, I'm not and attorney and I didn't stay in a Holiday Inn last night, but lease to purchase agreements don't do much to protect the purchasers.

Reply by sue_pa on 8/23/07 9:29pm
Msg #207355

why would he even attempt something this complicated without a lawyer? Using SigningDoc's situation, if you pay a lawyer he would draft the agreement to protect you from these type situations.

Reply by Brad/AZ on 8/24/07 9:54am
Msg #207429

Negative Nancys! There won't be any Earnest Deposit, so no worries about that part, but thanks for the heads up with your prior experience on that one. They will be leasing from a responsible person and their rent payments will accrue towards the purchase of the home. The current owner bought the house new back in 2001 and seems much more financially secure than most landlords these days (you know the ones that were just investors and got their hands caught in the cookie jar when the real estate market started nosediving). The last lease to own they were in (and are currently in) was not set on paper at all and now the owner (their friend) is welching on the deal...at the very least this will be a step above that. I tried to tell them not to do business on a handshake, but they didn't listen and have learned their lesson. I'm sure this route isn't 100%, but at least they're going into negotiations with their own ideas and paperwork to start with. I've heard of these deals locally right now that are set forth the following way...they set a price, however, if you decide to excercise your purchase option then an appraisal is done and you would have to pay the higher of the two amounts (original contract amount or appraised value). I'm trying to steer them clear of a jip like that. Oh, and you don't have to speak to me in the third person...I'm right here.

I will look in to BeccaFL's idea though, thanks for the input.