Purchase Contract A lease purchase is essentially a rental agreement combined with a purchase contract containing pre-negotiated terms. The buyer leases the property for a specified period of time with the intent to purchase it before the end of the lease agreement. The maintenance, value and rental payments are assured. Whereas with a standard lease, the maintenance, value and rental are not assured. It provides an immediate relief to the money hemorrhage of mortgage payments.
Sellers remain on the property deed until the option to purchase is exercised.
It helps you qualify for new financing on a future home. In most cases, sellers continue to enjoy the tax advantages of property ownership. A new occupant usually moves into the property within days rather than weeks or months, as is normally the case with traditional home sales and financing. Sellers save advertising and Realtor commission fees associated with traditional home sales.