How Our Process Works

---

Our company primarily chooses to exercise what are called “Lease Options” which is more commonly called “Rent to Own” agreements. This is simply a real estate style that is both a home rental, and then a home purchase at the end. 

This agreement is between a Buyer (who will live in the home) and a Seller (current owner of the property) which gives the Buyer the ability to (lease) live in the home for a pre-determined period of time, with the (option) ability to then fully purchase the home for themselves at an agreed upon price at the end of the lease period. 

  The tenant (Buyer) and the landlord (Seller) will come to an agreement on the terms of the Lease Option.
 

This Includes:

- The option fee

o This fee is a non-refundable fee paid up-front by the tenant (Buyer) for the right or ability to purchase the home at a later date

- The duration of the lease period

- The monthly rent amount.

- The final purchase price of the property

 This is the fee in which the tenant (Buyer) will pay to the landlord (Seller) at the beginning of the lease term. The fee requested serves as “consideration” for the ability/option to fulfill buying the property outright at the end of the lease term if the tenant (Buyer) wishes.
 

If for some reason the tenant (Buyer) fulfils the term of the lease but does not wish to buy the property, the landlord (Seller) will still retain the option fee.

 The tenant (Buyer) will begin living in the home while paying monthly payments back to the landlord (Seller). It is during this period that they (Buyer) have the exclusive right to purchase the property at the end of the lease term, but they are not required to do so. Often the tenant will pay a rental rate that is just above market value for this privilege.  

 At any time during the lease period, the tenant (Buyer) has the right to purchase the property outright if they wish to do so. 

At no point in the entirety of the Lease Option period is the tenant (Buyer) obligated to buy the property. This action will incur no additional penalties.
 

This style of agreement is helpful for tenants (Buyers) who may not be sure about what their future holds (work, family, changes in employment, etc.)

At any time during, or at the completion of the lease period, the tenant (Buyer) can choose to purchase the property outright. When this Option is exercised the terms agreed upon at the start of the lease period come into effect.
 

The option fee and rent paid are often, but not always, then used towards covering a down payment against the final purchase price. 

 Once the tenant (Buyer) has made notification to the landlord with their intent to purchase, a mortgage from an outside lending institution will need to be secured.
 

This mortgage will cover the remaining purchase price of the property less the option fee and rent if applicable.
 

Failure to secure a mortgage from an outside lending institution will result in a failure to purchase the home. 

  After the tenant (Buyer) has secured their own financing, the home will be transferred to the tenant (Buyer) from the landlord (Seller) just like a normal home sale.