an excellent alternative for home sellers
The Lease-Purchase Option (AKA "Rent-to-own" or "Lease-to-own") is an alternate way to sell your home. Rent-to-own contracts allow Sellers some flexibility in a home sale. You may be able to receive a higher price for a home by offering a lease-to-own option.
The lease-purchase model can be a good option for sellers whose houses have been on the market for some time and they haven't found a buyer for a variety of reasons. Perhaps it’s more advantageous to rent in your area. Or maybe interested buyers don’t have high enough credit or enough of a down payment to qualify for a mortgage. The rent-to-own option can attract potential buyers by giving them a chance to slowly build credit and pay their down payments over time.
Here's how it works
A Lease-Purchase Option is a Contract between a home Seller and home Buyer wherein the Buyer agrees to rent the property over the short term and purchase the home at a specified price at some time in the future.
A Lease-Purchase Contract is a valid form of home sale and is legal in all fifty U.S. States.
In a standard Lease-Purchase Contract, the two parties agree to a lease period during which rent is paid, and the terms of the sale at the end of the lease period, including sale price. The Tenant/Buyer has a certain period of time during which to exercise his/her option to complete the purchase of the home.