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For information on lease options,
"How Lease Options Benefit Realty Buyers, Sellers, Agents and Investors" is
available for from Tribune Media Services, 435 N Michigan #1500, Chicago IL
60611. 1-800-245-6536,or "Publication House", Burlingram CA. 1-800-736-1736
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Most lease-option agreements specify
that a portion of the rent on the property in question is applied toward the
purchase if the option is exercised. This is referred to as rent credit.
Institutional lenders accept rent credits as part of the down payment if rental
payments exceed the market rent and if a valid lease-purchase agreement is in
effect, a copy of which must be attached to the loan application.
For sellers, lease options give them several advantages,
especially in a slow market. These include a monthly rent higher than market
rent, top-market value for the property and tax-free use of the option
consideration until the option expires or is exercised. Also, the renter is
more likely to treat the property like an owner, tax-free use of option
consideration until the option expires or is exercised.
Lease-options should be read carefully for details on
transferring the option and other important concerns.
For more information, get a copy of "How Lease- Options
Benefit Realty Buyers, Sellers, Agents and Investors," available for $4 from
Tribune Media Services, 64 E. Concord St., Orlando, FL 32801. |
