Lease-Purchase Agreement Advantages and Disadvantages

Published: 21st December 2009
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The recession on real estate property has been worse and the rental business was affected by this crisis as well. Many landlords are offering new type of contract to the tenant which is called the lease-purchase agreement contract. This kind of contract gives opportunity to the tenant to buy the house they are renting after certain period of time. It is the landlord who set the time frame when can the tenant buy the house they are occupying. With this kind of contract it gives advantages and disadvantages to the landlord such as;
1. The tenant will pay the rent on time in order to avail the promise opportunity to buy the house.
2. The property will be will keep and maintain as the contract encourages the tenant to look after the house better and even treat it as their own.
3. No discretion will occur about miss in rents and house bills like electricity and water.
1. If the landlord's intention is to sell the house this is not the good idea of dealing it as the tenant could end up cannot purchase the house.
2. When the tenant failed to buy the house it will remain unsold over longer period of time.
3. The house value are decreasing this kind of contract is not a good idea for keeping the house longer.
The lease-purchase is a good idea if the landlord's intention is to give the tenant a chance to own his or her own property. But if the landlord's intention is to sell the house it is better that the landlord will sell the house direct. We cannot tell if the recession will keep decreasing as the time passes by plus there are new real estates that are cheaper to buy than buying old house. It only sounds ridiculous to offer an expensive price for an old house when there are new ones that are modern and updated with modern facilities and designs.
Before the landlord offers this kind of contract to any tenant the landlord must see to it that the tenant is willing enough to avail the opportunity. And if this kind of contract was only a clone for the landlord to avoid bad tenants it is best to think it over again especially if the landlord does not like to sell the house in the first place. The landlord must have known that the contract he or she is offering is a legal document and that the landlord is aware that in such time will reach its due the landlord needs to conduct the purchasing process. For the landlords do not take this kind of document for granted as the tenant can force you to sell the house as it was agreed on the contract.

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