Basic Things You Should Know About A Lease Purchase Contract

Home
>
Leases & Leasing
>
Basic Things You Should Know About A Lease Purchase Contract

Basic Things You Should Know About A Lease Purchase Contract

What exactly is a contract?

By definition, a contract is an agreement between two or more parties to do, or to refrain from doing, a particular thing in exchange for something valuable. The parties can be individuals, businesses, organizations and government agencies.

They key elements of a successful real estate contract:

1. Offer and acceptance

This implies original signatures with no alterations to the contract. Don't mistake offer and acceptance for counter-offer. When the original offer is marked up and initialed by the party receiving it, then signed, you got a counter-offer and not offer and acceptance. When you come to a final agreement, you should rewrite the contract according to the agreement and this contract must be signed by both parties.

2. Consideration

Usually, money is the form of consideration people use, but sometimes, a promise to perform/pay is also good. .

3. Written contract

All real estate contracts must be in writing. In order to write a good real estate contract, you must keep in mind these things:

You must write the full name of the parties on the contract and thus identify the parties.

You must have the legal description on the contract. Sometimes, the address will do, but it's preferable to have the full legal description. By having this on the contract, you will have the property identified.

You must have the amount of the sales price on the contract.

The contract must be signed by all the parties involved, or it won't be enforceable.

Keep in mind that minors, drugged persons, mentally unfit etc, cannot sign any contracts. Make sure that all the parties involved are competent.

Make sure all parties know the essential details, rights and obligations that are stated in the contract.

What exactly is a lease purchase contract?

Lease purchase contracts combine the basic lease contract with the option to purchase and, during or at the end of the lease period, it gives the tenant/buyer exclusive right to buy the home under the terms to which both parties agree in the contract. But first, the tenant/buyer have to pay the landlord/seller a non-refundable option deposit that is applied to the purchase price of the home. Then, the tenant/buyer pays a sum that is typical to the rental amount and usually, it is done on a monthly basis. A portion of that monthly payment is applied to the purchase price of the home.

Amanda Shoemaker owns a great directory of lease and lease purchase properties and houses for rent. Visit her site at http://www.leasebeast.com

In The News:

Yahoo! News: Top Stories

Ford says CEO will work for $1 to get loans (AP)

AP - Ford Motor Co. will tell Congress that it plans to return to a pretax profit or break even in 2011 when the Detroit Three automakers' CEOs appear before lawmakers this week to request $25 billion in government loans.

Stocks bounce back after steep selloff (AP)

AP - Wall Street rebounded Tuesday, regaining some of the ground lost in the previous session's huge drop, as the potential for a bailout of the beleaguered auto industry helped calm investors. The Dow Jones industrials rose nearly 225 points, regaining a third of Monday's nearly 680-point plunge.

Ford Nov. sales drop 30 pct., Toyota falls 34 pct. (AP)

AP - Ford says its November U.S. light vehicle sales tumbled 31 percent amid a continued slump in consumer spending and tight credit markets. Toyota's sales fell 34 percent despite its extension of zero-percent financing on a dozen vehicles.

Thai airports to reopen after government falls (AP)

AP - Thailand's prime minister was ousted Tuesday after weeks of protests closed the capital's airports, stranding 300,000 travelers. Protesters promised to lift their siege, and international flights were expected to resume Friday.

Iraq's notorious 'Chemical Ali' given second death sentence (AP)

AP - A special Iraqi court sentenced Saddam Hussein's notorious cousin, "Chemical Ali" Hassan al-Majid, to death Tuesday after convicting him of crimes against humanity for his part in crushing the 1991 Shiite uprising in southern Iraq.

Obama seeks to assure nervous governors on economy (AP)

AP - President-elect Barack Obama pledged quick work Tuesday on an economic recovery plan to include tax cuts and increased federal spending, and told the nation's governors he wants their advice in designing a package to help their hardhit states.

US official: India knew of plot on Mumbai's coast (AP)

AP - India received a warning from the United States before last week's attacks in Mumbai that militants were plotting a waterborne assault on the city, a senior U.S. official said Tuesday as domestic intelligence officials said they were aware of a Pakistan-based plot.

Body-swap illusion tricks mind in new study (AP)

AP - Shaking hands with yourself is an amusing out-of-body experience. The illusion of having your stomach slashed with a kitchen knife, not so much.

Britney Spears to embark on `Circus' tour in March (AP)

AP - Britney Spears is taking her "Circus" act on the road.

Burress arrives at Giants Stadium (AP)

AP - Plaxico Burress arrived at Giants Stadium on Tuesday, facing the possibility that his career with the Super Bowl champions could be over and he could land in jail after accidentally shooting himself in the thigh at a nightclub.

Big Three automaker plans hit congressional desks (Reuters)

Reuters - U.S. automakers started to submit plans demanded by Congress as the Big Three's CEOs and lawmakers gird for debate over a $25 billion bailout the industry says it needs to survive.

Georgia votes in key Senate run-off election (Reuters)

Reuters - The state of Georgia votes in a run-off election for the Senate on Tuesday that will help decide whether Democrats gain a big enough majority in the chamber to ram through legislation virtually at will.

Thai court disbands ruling party (Reuters)

Reuters - Thai Prime Minister Somchai Wongsawat was banned from politics for five years and his party disbanded on Tuesday, spurring jubilant anti-government protesters to end their blockades of Bangkok's airports.

Oil retreats below $49 as brief rally fades (Reuters)

Reuters - Oil fell below $49 a barrel on Tuesday, after reversing early losses in response to a rally in U.S. and European shares.

India demands Pakistani hand over fugitives (Reuters)

Reuters - India demanded Pakistan hand over 20 of its most-wanted fugitives as a sign of good faith, while both sides on Tuesday tried to cool tensions over the Mumbai attacks before a visit by Washington's top diplomat.

Iraq's "Chemical Ali" gets second death sentence (Reuters)

Reuters - An Iraqi court sentenced Saddam Hussein's cousin "Chemical Ali" to death Tuesday for the killing of thousands of Shi'ites in a ruthless crackdown on their uprising after the 1991 Gulf War.

Two U.S. soldiers charged for abusing Afghans (Reuters)

Reuters - Two U.S. soldiers serving in Afghanistan have been charged with the abuse of Afghan detainees, the U.S. military said Tuesday.

Chances of WMD attack in big city greater: report (Reuters)

Reuters - The chances of a terror attack on a major city somewhere in the world using weapons of mass destruction are better than even, according to a task force mandated by the U.S. Congress, The Washington Post reported in its Tuesday edition.

Thai protests to end after court ousts govt (AFP)

AFP - Thai anti-government activists on Tuesday agreed to end protests that have paralysed Bangkok's airports, after a court stripped Prime Minister Somchai Wongsawat of his post and outlawed the ruling party.

Pakistan offers 'joint investigation' into Mumbai attacks (AFP)

AFP - Pakistan offered on Tuesday to work hand-in-hand with India to track down those responsible for the Mumbai attacks but declined to respond immediately to a demand that it hand over 20 terrorist suspects.

Basic Things You Should Know About A Lease Purchase Contract

Leases & Leasing Leases & Leasing