Ask Experts Questions for FREE Help !
Ask
    PABewildered's Avatar
    PABewildered Posts: 6, Reputation: 1
    New Member
    		  
    #1

    Aug 17, 2009, 04:13 PM
    Lease/Option to buy law in PA
    I have a rental in PA, managed by an agent who found a renter with the desire to have a lease with option to buy. When I mentioned up-front consideration to buy money and a additional monthly fee as option money, the realtor/manager had never heard of these. Now, I am confused. What are the home owner's financial expectations with a lease/buy option in PA? Any responaibilities beyond the norm of having a tenant? Also, when is the sale price of the house determined?
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
    Uber Member
    		  
    #2

    Aug 18, 2009, 06:45 AM

    Hello PA:

    You're not so bewildered - but your agent is. I'd fire him. Who wants a real estate agent who doesn't know what they're doing??

    There is NO standard... You can add or subtract ANY requirement that you desire. The price and terms of purchase should be established NOW. You should have a down payment specified, that you'll allow them to pay monthly. When it reaches a certain amount, or at a certain time, you can execute the sale. Until then, it's a tenancy. Your agreement should state that if they default, the lease purchase is void and ANY payments made toward the purchase are forfeit.

    There's a lot more to it than that... I'd get my legal advice from a lawyer and NOT your realtor.

    excon
    PABewildered's Avatar
    PABewildered Posts: 6, Reputation: 1
    New Member
    		  
    #3

    Aug 18, 2009, 01:57 PM
    Hello excon,
    Thank you for your help. I wish I could afford a real estate attorney :( because that is very good advice. I'll try to remember that I am the owner who is not in a hurry to sell in this low, low market.

    PABewildered

    Quote Originally Posted by excon View Post
    Hello PA:

    You're not so bewildered - but your agent is. I'd fire him. Who wants a real estate agent who doesn't know what they're doing????

    There is NO standard... You can add or subtract ANY requirement that you desire. The price and terms of purchase should be established NOW. You should have a down payment specified, that you'll allow them to pay monthly. When it reaches a certain amount, or at a certain time, you can execute the sale. Until then, it's a tenancy. Your agreement should state that if they default, the lease purchase is void and ANY payments made toward the purchase are forfeit.

    There's a lot more to it than that... I'd get my legal advice from a lawyer and NOT your realtor.

    excon
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Lease with Option to Buy w/verbal conditions [ 2 Answers ]

I agreed to a 18 month lease with a buy option with the verbal understanding monies paid in addition to lease (rent $2300, additional $1,000 held in escrow to be applied to home sale) would be returned if unable to buy. The original premise was a straight one year rental for $2,300 per month. The...

How do you get out of lease option to buy? [ 4 Answers ]

Hello, I was wondering how I could get out of a lease option to buy? Without having to stay for the remainder of the lease.

Breaking a lease to purchase option [ 2 Answers ]

I am in a third 6 month lease to purchase option to purchase my home . My circumstances have changed and I now do not wish to sell . Can I legally cancel a lease to purchase option in Texas. burk

Lease option/backing out [ 1 Answers ]

I recently signed a lease with the option to purchase agreement with a tenant. It has been 2 days and he wants to back out of this agreement. Is there a cooling off period or recission period for leases in Nevada? I believe that I can hold him responsible for the lease/option. He gave me a check...

Help lease option [ 4 Answers ]

Is it legal for a landlord to walk in hand you a lease option paper asking for a high amount of money and give you 30 days to move if you do not have it? Then to ask for a counter proposal which I did, all in writing he had not seen it we discussed ot over the phone a agreed I sent a check he...

View more questions Search