Editing Lease purchase contract (section)

== Real estate ==

In real estate transactions, a lease purchase contract combines elements of a traditional [[Lease|rental agreement]] with an exclusive [[right of first refusal]] option for later purchase on the home.<ref name="park" />

[[File:Lease Purchase Agreement.pdf|thumb|Combines elements of a traditional rental agreement with an exclusive right of first refusal option for later purchase on the home. It is a shortened name for Lease with Option to Purchase Contract.]]

The lease purchase agreement expounds upon what responsibilities the tenant/buyer and landlord/seller undertake during the course of the lease. This contract should describe any option fee and how much of the monthly payment will be credited to the down-payment for the purchase of the home at the end of the lease.

At the end of the lease-term, the tenant/buyer has the option to purchase the house. The lump sum accrued from the initial deposit and the rent credit are only released to the buyer as down-payment on the house should the tenant/buyer decide to proceed with the purchase. The tenant/buyer is responsible for securing the necessary [[mortgage loan]] to finalize the purchase of the home.

Should the tenant/buyer be unable to purchase the house due to a lack of financing, the tenant and landlord can agree to extend the option period, convert the lease purchase contract into a [[Lease|traditional rental agreement]], or end the contract with the tenant moving out and the [[Landlord and Tenant Board|landlord]] seeking other renters or buyers.<ref>{{cite web |url=http://money.usnews.com/money/personal-finance/articles/2014/01/22/is-rent-to-own-or-contract-for-deed-right-for-you |url-status=dead |archive-url=https://web.archive.org/web/20140130105158/http://money.usnews.com/money/personal-finance/articles/2014/01/22/is-rent-to-own-or-contract-for-deed-right-for-you |archive-date=2014-01-30 |title=Is Rent-to-Own or Contract-for-Deed Right for You? - US News and World Report}}</ref>