Lease Option and Lease Purchase are two different types of real estate deals. If you don't accurately structure your lease agreement, the transaction can fail or become more expensive for you. Jo Ann Koontz and Jackie Durham (Koontz & Associates, PL) discuss important details and distinctions between Lease Option and Lease Purchase agreements.
2:31 Defining Lease Option and Lease Purchase
4:20 Lease payments should not reduce purchase price.
6:30 Rent payment as credit on purchase.
8:23 Include statement in lease that rental payments are not down payments.
11:06 Identifying tenets/buyers properly
11:36 Don't include option agreement as part of lease. Option fee should be reasonable.
14:40 Do all options have a set purchase price?
17:45 Importance of establishing a lease purchase agreement.
20:01 Need to charge fair rental and deposit, not adding proration of HOA to purchase.
22:52 Default provisions.
24:09 Realtors should get compensation structure in place.