Lease Purchase

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Madeline Newell

Group Member

Nov 10, 2009 5:26:52 PM

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When buyers qualify for a loan at the beginning of a Lease/Purchase contract, and then a year latter say that they now do not qualify and send letter of denial, is there any recourse and/or proof for the Sellers that the buyers "really" don't qualify?

Pat Hutton, AHS, Broker, GRI

Group Member

Nov 11, 2009 4:02:59 AM

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To begin with if I write a lease purchase, I get non refundable money upfront, Buyers have a year to secure financing and If they do not get financing within time stated, Seller keeps all earnest money... Also it has to be a significant amount or you are just leasing the property and the people will leave when they are ready..

I have seen contracts written for a lease purchase where the Buyer is paying $500.00 a month lease and when he gets a loan, his payment will be $800.00....so they are not going to purchase the property..Common sense will tell you this...

I always say if it is too good to be true, it will not work...Think before you write anything and be sure both parties understand the terms and know what they are agreeing to.

Pat Hutton, AHS, Broker, GRI, Owner

ERA Martin REalty & Auction

Madeline Newell

Group Member

Nov 11, 2009 9:46:54 AM

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Thanks for you help Pat, I really appreciate this information.

Madeline

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