February 4, 2008

Lease/Purchase Legalese

Filed under: Real Estate

I am in the process of signing a lease purchase agreement for the house of my dreams. 

What would happen if in a year I am not able to purchase the house through a mortgage?  What might be the legal issues?

Sylvia

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Hi Sylvia,

Those details should be spelled out in your lease/purchase agreement.  You would at minimum be out any money you put down upfront and you’d really have to ask an attorney for questions about “legal issues”.

My advice would be to make sure your option/purchase price is as low as possible, your monthly payments are affordable, and above all check public records to see whether the current owner of the home is delinquent on property taxes or worse - in foreclosure.

Thanks for the questions and hope this helps.

Paul

This author is not an attroney and this information should not be considered legal advice.  Please consult an attorney for legal advice.

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