A Lease Purchase allows you to rent and occupy the home while having a contract to purchase the property for a set amount at a predetermined time in the future. There are two documents involved; a lease or rental agreement, and a purchase contract to buy the property at a later date. Lease purchase agreements vary from transaction to transaction, so there is not one universally standard contract.



With current forecasts of growing home values, however, it's not surprising to see Lease Purchases and Lease Options gaining favor today.

Benefits of Lease Purchase for the Tenant/Buyer

? Minimum cash may be required up front. Sometimes buyers with credit problems will benefit from this purchase method, since sellers may finance you, OR the method affords you time to repair less-than-stellar credit before you purchase, using a mortgage loan you acquire yourself.

? Your home buying power is increased, as you now have the ability to purchase using alternative methods.

? You have faster equity growth than if you were just renting, and faster than with conventional financing. Some of your rental or option money is working for you towards the purchase. You may have a lower down payment at closing since you will have option money or rental credits to apply. By the time you purchase, prices may have appreciated beyond your locked-in price, giving you additional equity when you eventually sell.

? A lease purchase gives you sufficient time to check out all the features and faults of the house. Also, you have time to check out the neighborhood, schools, churches, temples, synagogues, nearby shopping, health care facilities, recreation, and your next door neighbor before you buy the house.

? With a lease purchase, you skip paying closing costs, traditional down payment and other fees normally found in a purchase using conventional mortgages.

? While you are leasing, you have no taxes or property insurance to pay (the owner does that). Major repairs are normally the owner's responsibility until you buy the house, at which time YOU become the owner!

? Every type of home is available for lease purchase in all price ranges and locations.

Lease Purchase Agreements

A Lease Purchase Agreement is usually two separate agreements between the parties: a Lease Agreement and a Purchase Agreement. The Lease Agreement is a fairly standard rental agreement. The Lease Purchase Agreement is a purchase/sale agreement whereas the tenant/buyer is contracting to purchase the house for a specified price and term. The Lease Purchase shows a definite intent to purchase the property, and sets the terms upon which the sale of the property will occur. This differs from a Lease Option where the tenant/buyer has the right but not obligation to purchase the property.

The value of the home may increase if the Lease Purchase Agreement has a term of many months or years, but the price and other terms are fixed in the purchase agreement. The seller cannot sell the house to anyone else as long as the Lease Purchase Agreement is in force.

We Buy You Business (WBYB) can assist individuals from losing equity built up in Lease Purchase Agreements. If your Lease Purchase Agreement is ending now and you do not have the funds to close the deal, contact WBYB at

ASAP so that your earned equity is not lost.