Basic Things You Should Know About A Lease Purchase Contract -

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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:

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/pemex-oil-tanker-lease-financing/story.aspx%3Fguid%3D%257B3C44C159-DAD9-4428-A3E8-6337AC3CD7D1%257D%26dist%3Dhpprcid=1257708017ei=lU_1SPb3Gajk6gOG6sCXDQusg=AFQjCNGXBymTARHz1jVlJL4rgqAdOv8EogPemex Oil Tanker bLease/b Financing Completed by ICP Capital/abrfont size=-1font color=#6f6f6fMarketWatchnbsp;-/font nobr11 hours ago/nobr/fontbrfont size=-1The two ships have been leased to Pemex Refinacion for a period of 10 years with purchase option at the end of the blease/b. No other terms of the transaction b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.reuters.com/article/ousiv/idUSTRE49D94W20081014cid=1257708017ei=lU_1SPb3Gajk6gOG6sCXDQusg=AFQjCNEvbiyYX_GhHOiIA2iauTHZOaDu8QHedge funds target corporate lending as banks dry up/a font size=-1 color=#6f6f6fnobrReuters/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1257708017hl=ennobrall 17 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.dividend.com/blog/%3Fp%3D1512cid=1256028489ei=lU_1SPb3Gajk6gOG6sCXDQusg=AFQjCNFIpReaHoPRFxcssrpF2ExvZMJ8Jgimg src=http://news.google.com/news?imgefp=J3FCBPuxZXEJimgurl=www.dividend.com/blog/wp-content/uploads/storypics/_dollars-burning.jpg width=80 height=64 alt= border=1brfont size=-2Dividend.com/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.tradingmarkets.com/.site/news/Stock%2520News/1940514/cid=1256028489ei=lU_1SPb3Gajk6gOG6sCXDQusg=AFQjCNH3ISCtCSU4_M547VqdfZg70SYiOgbLeasing/b in shale areas being cut back/abrfont size=-1font color=#6f6f6fTrading Markets (press release),nbsp;CAnbsp;-/font nobr16 hours ago/nobr/fontbrfont size=-1That does not mean, however, that Chesapeake and other natural gas companies are ending blease/b activity altogether. Mr. Chandra noted that Chesapeake is b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://online.wsj.com/article/SB122359301189021003.html%3Fmod%3Dgooglenews_wsjcid=1256028489ei=lU_1SPb3Gajk6gOG6sCXDQusg=AFQjCNGuGXIRdil6EuWdvwj302jiimtb4QCredit Crunch and Sinking Prices Threaten Chesapeake Energy#39;s Growth/a font size=-1 color=#6f6f6fnobrWall Street Journal/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://online.wsj.com/article/SB122385842864427455.html%3Fmod%3Dgooglenews_wsjcid=1256028489ei=lU_1SPb3Gajk6gOG6sCXDQusg=AFQjCNGoaA9rRzII48UnwRs4yk3ixjUBqgMargin Calls Hitting More Executive Suites/a font size=-1 color=#6f6f6fnobrWall Street Journal/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1256028489hl=ennobrall 118 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.naplesnews.com/news/2008/oct/14/collier-joins-broward-opposing-alley-lease/cid=1257884566ei=lU_1SPb3Gajk6gOG6sCXDQusg=AFQjCNH7vQMTr65GD7AXpylGUrx132JgTQCollier joins Broward in opposing Alley blease/b/abrfont size=-1font color=#6f6f6fNaples Daily News,nbsp;FLnbsp;-/font nobr35 minutes ago/nobr/fontbrfont size=-1Concerned that state transportation officials believe Collier County’s opposition to a blease/b of Alligator Alley stems from worries about getting a fair b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.naplesnews.com/news/2008/oct/14/collier-commissioners-ok-audit-greenhouse-gas-emis/cid=1257884566ei=lU_1SPb3Gajk6gOG6sCXDQusg=AFQjCNFI1am5WjQdxUzeAsh7_2dyHJ_CTgCollier commissioners OK audit on greenhouse gas emissions/a font size=-1 color=#6f6f6fnobrNaples Daily News/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1257884566hl=ennobrall 2 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/mercantile-bank-corporation-announces-2008/story.aspx%3Fguid%3D%257BFFB39969-A595-466B-A72E-1C4276381E09%257D%26dist%3Dhpprcid=1257254212ei=lU_1SPb3Gajk6gOG6sCXDQusg=AFQjCNHUiBIo_wJFf9tlgJyq-3IRhfw-FAMercantile Bank Corporation Announces 2008 Third Quarter Results/abrfont size=-1font color=#6f6f6fMarketWatchnbsp;-/font nobr15 hours ago/nobr/fontbrfont size=-1The allowance for loan and blease/b losses equaled 1.58 percent of total loans and bleases/b as of September 30, 2008, compared to 1.73 percent at June 30, 2008, b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://money.cnn.com/news/newsfeeds/articles/prnewswire/200810141208PR_NEWS_USPR_____CLTU071.htmcid=1257254212ei=lU_1SPb3Gajk6gOG6sCXDQusg=AFQjCNECygMFc6ZMgLqcTeXlAkqWHWHoUAFirst South Bancorp, Inc. Reports September 30, 2008 Quarterly and b.../b/a font size=-1 color=#6f6f6fnobrCNNMoney.com (press release)/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1257254212hl=ennobrall 51 news articles/nobr/a/font/div/font/td/tr/table

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Basic Things You Should Know About A Lease Purchase Contract

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