The Option Agreement should have all of the standard information pre-printed. This leaves you with the responsibility of filling in the blanks that are specifically pertinent to the purchase of your home.

Like the Rental Agreement, Option Agreements can be pro-seller, neutral or pro-buyer. Believe me, it does make a difference! Your best bet would be to use the contracts / agreements from my website. I have been using them and improving on them for more than twenty years. If you elect not to purchase them, I would recommend you retain the services of an attorney to help you get the most protection possible. Explore Pre-Paid Legal services at www.GotLegalPlans.com to get the best rates and advice.

Here are several of the clauses you will find in my Option Agreement that make it pro-buyer. Remember, you are the optionee and the seller is the optionor.

Exclusive Right

This clause protects you by giving you the exclusive right to buy during the option period. The seller cannot sell their home to anyone else as long as the option is valid.

Option Credits

This clause is critical and can be worth many thousands of dollars to you. It is another important reason to have pro-buyer contracts, as neutral and pro-seller contracts will almost certainly not have this clause. Option Credits are amounts that are credited against the purchase price when you buy the home. Typically, they are applied out of the monthly rent. Option credits, like the option fee, only apply against the purchase price of the home, so if you don’t buy the home, you won’t receive these credits.

No Liens

Additional liens against the home may impact your ability to purchase the home. For example, if the seller fails to pay their property taxes, it would create a lien against the property preventing the seller from selling the home until the taxes are paid.

Direct Payment

This clause is all about protecting you to ensure that you will be able to purchase the home, even if the seller stops making payments. It gives you the right to make the payment directly if the seller stops paying his mortgage.

Rent to Buy is your hands-on guide to buying your next home as a rent to own.  You can get your next home NOW without having to qualify for a mortgage until later.  To Learn more about Option Agreements purchase your copy of Rent-to-Buy today.

This entry was posted on Friday, December 11th, 2009 at 5:42 pm and is filed under Lease Option Student / Rent to Own student, Uncategorized, Wendy Patton Events. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.