How Do Lease Options Work And What Are The Benefits?

A lease option is an arrangement with you and a seller to exercise the option to buy a house after you have rented it for a specific period. A portion of your rent would be applied toward the purchase if the option is exercised. This is referred to as rent credit, which most institutional lenders will accept as part of the down payment if rental payments exceed the market rent and if a valid leasepurchase agreement is in effect, a copy of which must be attached to the loan application.

Read any leaseoption arrangement carefully for details on transferring the option and other important concerns. If you are considering a lease option, be sure you do your homework first. And have an attorney or financial advisor on hand to review any paperwork before you sign.

Other Ohio Real Estate FAQs

Q: Where Do I Learn More About Real Estate In: Ohio
A: The Ohio Department of Commerce Division of Real Estate and Professional Licensing 77 South High Street 20th Floor Columbus, OH 432156133 6144664100 … More
Q: My Real Estate Deed Indicates I Own A Section Of The Old Canal Adjacent To My Property. How Can The State Claim They Own The Canal When I Have A Deed For The Property?
A: To expedite construction of the canal system the Ohio Legislature passed The Canal Act of 1825. The Act authorized the state to appropriate the land needed for the … More
Q: When and why does foreclosure begin?
A: Lenders will initiate foreclosure proceedings when homeowners become delinquent in their mortgage obligations, usually after three payments are missed. The lender … More
Q: I Want To Put A Driveway Over Canal Land To Access My Property. May I Do This?
A: Yes, if it does not interfere with drainage, or the access of others etc. Send the details, including a map, of your project to the Canal Real Estate staff. If your … More

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