Problems in the Lease Purchase Agreement

Anyone can go for a lease purchase agreement who wish to live in a home of their own but neither has sufficient money nor a good credit score to apply for a loan. This agreement is a beautiful way to own a home even if you do not qualify to become an owner now. As there are some disadvantages associated with anything that looks well, so same is the case with the Lease Purchase Agreement also.

Natural problems

The Lease purchase deals may be worse if the leased house burns down and the seller has not insured it then the buyer will not have anything to purchase and nothing can be claimed from the insurance company also. So in this type of condition renting could be better than leasing. If the home is insured then also it may not be a good deal for the Lessee because it may take time to get claim from the insurance company and this condition must also be mentioned in the agreement otherwise the Lessee will not get any benefit of this.

The home you leased near the seaside may face problems like Tsunami and in such cases the Lessee will be helpless. So take these factors into considerations before you sign a lease purchase agreement.

Problem of mortgage payments

If the seller has built his home by taking mortgage and he is not paying the mortgage payments then it is a risk for the buyers because if the seller has not paid mortgage payments then the foreclosure notice may arrive at the front door anytime and the buyer will be again helpless in such a situation. Again renting is better than leasing so first get confirmed about this fact with the help your real estate agent and sign the agreement only if there are no mortgage payments that the homeowner has not paid yet.

How to hire a real estate agent?

You must take some measures in selecting a real estate agent. These measures could be to check the reputation of the agent. Knowing that the agent is a company or individual will also be useful. These measures are necessary to get assured that the best industry people are working for you.

So in some conditions, the lease purchase agreement might not work well and to avoid such situations you must a hire a real estate agent who will be expected to present an offer to you only after knowing the facts such as mortgage payments on the house and the possible rise or fall of the real estate market.

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