Question: How do lease options work and what are the benefits?

Answer: A lease option is an agreement between you and a sller to buy a house after you have rented it for a specific amount of time. A portion of your rent would be applied to the purchase if the option is exercised.

If you are a seller, a lease option can give you several advantages. These include a monthly rent that is higher than market rent, top-market value for th eproperty and a tax-free use of the option consideration until the option expires or is used. The renter is mor elikely to treat the property as an owner and the tax-free use of option consideration until the option is expired or used.

Question: What is a lease option?

Answer: A lease option is when a renter signs a lease with an option to buy the property after renting it for a specific price within a time frame. In most lease options, a part of the rent is applied towards the down payment.

Question: Where do I get information on lease options?

Answer: You can obtain information on leae options by contacting your real estate agent or read up on it in the public library oron the internet by doing a google or yahoo search. You can also ask your real estate attorney, if you have one, if he/she has any information you can review.