Comparing Purchase Sale Contract to Lease with Option to Buy
Are you looking to move into a new property? Have you decided if you are looking for what could be your permanent address, or for just a temporary abode? The reasons why you are moving to a new home should make you consider whether or not you need a purchase sale contract or a lease with option to purchase.
What is a Purchase Sale Contract?
When you know that you want to start owning your home, you need to find someone who is willing to sell you one. With the help of a realtor, you can pinpoint the house you would like to be yours, and then with the help of a real estate attorney, you can work on drafting a purchase sale contract. A purchase sale contract is the legal agreement that states that you will buy a property from another party, ending with the transferal of the title to you. When you use a purchase sale contract, sometimes called a purchase and sale agreement, you are in it for the long haul and assume all responsibilities of home ownership.
What is a Lease with Option to Purchase?
Maybe you are not entirely confident that your new house should be your new home? If you are on-the-fence, so to speak, about permanently owning property, try to find a landlord that offers a lease with option to purchase. This contract begins as a typical rental agreement – you agree that you will pay them a certain amount each month for a particular amount of months – but, when the lease comes to an end, you are given the option to start putting down payments for owning the property, instead of just renting it.
When you use an option to purchase at the end of your lease, you will usually continue to pay the landlord your typical amount plus some extra. This may feel like you are paying rent but you are technically paying for your own home, little by little, month by month; the amount you paid in the original lease should also be counted towards your home ownership payments. Lease with option to purchase is a great solution for people who do not have the funds or the credit to make an initial down payment on a home.
An Attorney’s Help Can Make All the Difference
Whether you need a purchase sale contract or a lease with option to purchase, you should work with the Oklahoma City real estate attorneys from Mazaheri Law Firm. Our team can review your contract, check it for errors and legal loopholes, and protect your best interests and finances from costly mistakes. Go ahead and contact us today at 405-414-2222 for more information about our services.