Do You Know The Future Purchase Price? Where in the contract is the future purchase? Get the future purchase price locked in and in writing in the contract! Do NOT sign a contract with a floating future purchase price, unless you know exactly how the future price will be determined and you agree to the method used to determine the future purchase price. SAMPLE: Purchase Option. A. Tenant shall have the option (hereinafter "Purchase Option") to purchase the Premises as follows: (1) Purchase Price. The total purchase price for the Premises shall be $265,331.00 and 00/100 DOLLARS and shall be payable as follows: **Both parties know exactly what the future purchase price shall be, and presumably both parties know that the buyers can afford the home at the future purchase price. Non-Refundable Option Payment. A non-refundable option payment of $7,050.00 and 00/100 DOLLARS shall be due and payable upon full execution hereof of this option agreement, with $7,050.00 being applied 100% to the future purchase price. (2) The balance of the Purchase price shall be payable in cash at closing. B. In the event Buyer is unable to obtain financing at the end of the fourteen-month lease term, Seller will extend this Lease Option agreement for an additional term provided Tenant has paid all rents on time, maintained the property according to the Agreement, and improved condition currently preventing financing. C. In the event the property does not appraise at end of the lease term, Seller will extend the lease term with no increase in purchase price or monthly payment in order for the property to appraise, provided Buyer has complied with all terms of this Agreement. **Both parties have tangible, measureable guidelines for determining whether Tenant/Buyer receives automatic lease term extension. **When a contract includes tangible, measureable guidelines regarding the future purchase price and all "what if..." situations, you may rest comfortably knowing you should not be the victim of an unfortunate scam or misunderstanding. D. Tenant must notify Landlord in writing and no later than March 27, 2006, of his election to exercise the option. E. The Purchase Option shall not be effective should Tenant be in default under any terms of this lease. F. If Landlord fails to perform any of the covenants of this Purchase Option, the Tenant shall have the right of specific performance. **Whatever you want to call it, a Lease-Purchase, Lease-Option, Rent-to-Own, Lease with an Option to Purchase contract should include clear, easy to understand, and measureable guidelines. Don't be so excited to hear "YES" to an opportunity to get the keys to your new rent to own Florida home, without paying close attention to all the contract details determining your future ownership opportunity. By all means, please pay your attorney to review the contract and advise you before you sign anything. |
