| A: |
For
information on lease options, "How Lease Options Benefit Realty
Buyers, Sellers, Agents and Investors" is available for from
Tribune Media Services, 435 N Michigan #1500, Chicago IL 60611.
1-800-245-6536,or "Publication House", Burlingram CA.
1-800-736-1736 |
| A: |
Most
lease-option agreements specify that a portion of the rent on the
property in question is applied toward the purchase if the option is
exercised. This is referred to as rent credit. Institutional lenders
accept rent credits as part of the down payment if rental payments
exceed the market rent and if a valid lease-purchase agreement is in
effect, a copy of which must be attached to the loan application.
For
sellers, lease options give them several advantages, especially in a
slow market. These include a monthly rent higher than market rent,
top-market value for the property and tax-free use of the option
consideration until the option expires or is exercised. Also, the renter
is more likely to treat the property like an owner, tax-free use of
option consideration until the option expires or is exercised.
Lease-options
should be read carefully for details on transferring the option and
other important concerns.
For more
information, get a copy of "How Lease- Options Benefit Realty
Buyers, Sellers, Agents and Investors," available for $4 from
Tribune Media Services, 64 E. Concord St., Orlando, FL 32801.
|