Lease Purchase vs Rent to Own
Salida Colorado Lease Option Alternative
Attention Realtors. Some real estate companys will allow you to be paid up front from the earnest money. Others won't. Our team does not accept our commission until the home closes.
In our area of Colorado, there are almost no rent-to-own transactions. The market is too good for a seller to leave it off the market so long. What is more prevalent, however, is a Lease Purchase. Lease Purchases MUST be done through an attorney due to the complexity of the transaction so make sure you find a real estate attorney who is familiar with them. Censequently, the Salida Colorado Area Lease Option Alternative is lease purchase.
In a nutshell, lease purchases are a home sale with an extended close day.. maybe a year or so out. The buyer lives in the home as a tenant until it closes.
Everything is negotiable in a lease purchase. In general, a buyer puts down a significant amount of earnest money (negotiable) that becomes non refundable after the inspection period is completed. The buyer does not move in until the inspections are complete and resolved and the earnest money becomes non refundable. The earnest money is generally 6-10%. The buyer and seller negotiate rent, what % of that rent is credited toward the down payment at closing, and whether or not deposits are paid. They negotiate who pays what wrt repairs. it is common to see repairs under a certain amount done by the buyer and over a certain amount paid by the seller. The seller generally pays taxes, insurance and HOA dues. The buyer often pays a renter's insurance policy.