A 2 Year Lease Purchase Contract: What You Need to Know
A lease purchase contract is an agreement where a tenant rents a property for a specified period of time, with the option to purchase it at the end of the lease term. A 2 year lease purchase contract is a specific type of lease purchase agreement that lasts for two years.
The concept of a lease purchase agreement can be attractive for both the landlord and the tenant. For the landlord, it provides a stable source of income over the agreed period with the added possibility of selling the property at the end of the lease term. For the tenant, it provides the opportunity to “try before they buy,” allowing them to test out the home before committing to purchasing it.
Here are some key points to consider when entering into a 2 year lease purchase contract:
1. Terms and Conditions: The terms and conditions of the agreement should be clearly stated, including the monthly rent amount, the option to purchase price, and any conditions that need to be fulfilled before the option to purchase can be exercised. For example, the tenant may need to maintain the property in good condition and make all payments on time.
2. Legal Assistance: It is recommended to seek legal assistance when entering into a 2 year lease purchase contract to ensure that all terms and conditions are fair and legally binding.
3. Option Payment: The tenant may be required to pay an option payment or a deposit to secure the option to purchase the property at the end of the lease term. This payment is typically non-refundable and will be applied to the purchase price if the tenant decides to exercise the option.
4. Rent Credits: Some 2 year lease purchase contracts may include rent credits. Rent credits are a portion of the monthly rent payment that is applied to the purchase price if the tenant decides to exercise the option. It is important to clarify whether rent credits will be offered and how they will be applied.
5. Maintenance and Repairs: It is important to clarify who is responsible for maintenance and repairs during the lease term. In general, the landlord is responsible for major repairs, while the tenant is responsible for minor repairs and regular maintenance.
In conclusion, a 2 year lease purchase contract can be a great option for both landlords and tenants. However, it is important to carefully consider the terms and conditions before signing the agreement. Seek legal assistance if needed and clarify all terms and conditions, including option payment, rent credits, and maintenance and repairs. With these considerations in mind, both parties can benefit from this arrangement.