The option is a vital part of a lease-to-own purchase. Here are the features of a basic lease option:

• Buyer has to pay the option money to the seller for the only right to buy the property and it can be quite a lump sum.
• The buyer and seller have to agree mutually on the purchase price, sometimes much higher than the market value.
• During the option, the buyer also makes a deal about the monthly rent which would be in future for lease-to-own property.
• The term is negotiable, but it is generally for one to three years, and the buyer can take the help of the bank to pay the seller in full.
• The option money mostly does not apply to down payment and a portion of the rent goes for the purchase price. The option money is mostly non-refundable.
• Only if the buyer defaults that the property can be given to some other prospective buyer.
• Buyers are liable to maintain the property and pay all expenses associated for taking care of the lease-to-own property including insurance.
• The buyer will have to buy the property. If he or she cannot, then the rent payments are declared void.

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A rent-to-own house plan especially in Chicago is really lucrative, especially for the buyers in today’s disintegrating real estate market. The deal will get locked in the present rate providing the sellers with more than the house rent which might go through wear and tear. Buyers can lock the amount for the house in today’s low prices and pay the amount within ample time provided to them. read more »