Lease to Own in Little Rock Arkansas

[Nicole Almond]

So after our first rehab sitting on the market for about 4 months, we have some interest in a Lease to own scenario. I'm a little nervous, as I've heard that there are quite a bit of legalities tied to it. They brought up terms that seem a little unusual to me. $5,000 deposit- one year lease with option to purchase. If he doesn't buy by end of year, forfeits deposit. If he does buy, deposit and rent both go towards purchase. Does anyone have any advice regarding the legalities of a lease to own, or just in general? A year seems a little short to me. If he's another investor looking to sandwich, he'd make that known, right?

Thanks in advance!

[Jacob White]

These are not that uncommon, particularly in commercial developments, but you will want your legal counsel to review the proposed contract.  The lease will need to discuss financing and how the rental payments are allocated re: interest/principal. He's not under any duty to disclose his intentions (if there are any) that I'm aware of.