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?

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

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


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