Purchasing a house is a big dream of millions of eyes. People want to own a home of their own, but because of higher interest rates and lengthy loan approval procedures their dreams are generally devastated. Thus, almost all the people are looking for simple ways to buy their dream home. As there is an answer to every question, similarly, a Lease Purchase Agreement is excellent aid for people who wish to purchase their own home. Thus, this agreement enables the seller to lease his property to the buyer till the agreement period. But, the buyer must be a good person who is highly interested to purchase the property from the seller, but doesn't have enough funds to pay off immediately. Though, the actual validity of this contract is 1 to 2 years, however, the buyer and seller can dissolve the agreement before the actual term. But, the maximum period is negotiable among the buyer and the seller.
The obligation of a Lease Purchase Agreement is that the buyer has to deposit some amount termed as purchase deposit. This money is nothing but his down payment which can not be paid back back to him if he loses the contract. Three percent of the property price is fixed as amount for purchase deposit. Even the amount of purchase deposit is agreed between the buyer and the seller. This amount can be higher or lower. Generally, the purchase price is set by the buyer and seller in advance. It is assumed that the buyer will make the necessary payments before the term period of the contract is over. The buyer can either pay in cash or through loan. And if the contract is extended by the seller, the purchase rate becomes greater according to Lease Purchase Agreement.
A Lease Purchase Agreement is beneficial to both, the buyer as well as the seller. A buyer gets enough time to collect huge for down payment, repay his previous dues or to sell his property. Because the monthly payments is ascribed as property amount, the buyer gets a forced saving plan. The seller attains the existing market rate of the property which is generally higher. This is due to the fact as he allows some flexibility to buyer on closing date of the contract. Market rents might be greater and the buyer is liable for the repairs and maintenance expenses. Obviously, the buyer is the future property owner. Also, the seller is contented because he doesn't need to pay any loan on an empty property!
Thus, this type of agreement is quite useful to the seller as well as the buyer. If you too are thinking to purchase a property with Lease Purchase Agreement, then you can always log on to the net. You will find all the essential information about the agreement through reliable online resources. In today's tough economy, the buyer finds hard to purchase a house and the seller doesn't get a genuine buyer for his property. Thus, to enable both the parties, Lease Purchase Agreement is a great boon that has helped millions worldwide.
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