If you want to buy a home, but don’t have enough down payment or credit history, a lease option is one of the several avenues you can consider. However, before entering into the contract, it is essential to know the fundamentals. With the help of board certified lawyers in Fort Myers, you can understand the several legal implications of entering into a lease option agreement. Want to know more? Here’s a quick guide to help you understand the basics of lease options in Florida!
What Does a Lease-Option Arrangement Mean?
When thinking about real estate planning, the lease option is an attractive financial instrument for aspiring property buyers. These agreements allow the potential buyer to occupy the seller’s property for some time and purchase the property at a fixed rate over a while.
In this arrangement, the buyer has to pay an option fee. However, in future, if you do not wish to buy the property, this fee is non-refundable. A real estate attorney in Fort Myers will help you understand the terms, including the length of the agreement, option fee, when and how you can terminate the contract, and other legal obligations.
What Are the Responsibilities of the Buyer & Seller?
Most people make the mistake of entering into a sale contract without knowing their responsibilities. In this case scenario, you need to understand the landlord-tenant relationship. The contract should disclose the duties of both parties in terms of maintenance and repairs. Also, you should be clear about who is going to pay the property tax and utilities. A board-certified lawyer in Fort Myers will prepare a plan with renter’s insurance to ensure that you are well-protected.
Is Home Inspection Necessary to the Contract?
It is not mandatory to carry out a home inspection before agreeing to a lease option agreement. However, you must hire professionals to check out the property to ensure a sound financial decision. If the property has high repair costs or any red flags, you need to decide who will pay for it and when to work it out. A real estate attorney in Fort Myers will act as your negotiator to get a better deal if the house has many faulty issues.
Can I Reinstate the Contract If I Fall Behind the Payments?
Florida law allows for reinstatement of a lease option. However, you may have to bear renewal charges and penalties. Board-certified lawyers in Fort Myers are well-versed in Florida law and can guide you through the process of reinstatement for a smooth experience. They will help you estimate the total amount you will end up paying under the contract, including the total of all rent payments, reinstatement fees, and other charges.
Get the Best Legal Advice From Hale Law!
Our board-certified attorneys in Fort Myers will help you determine which rental option makes the most sense and go over the paperwork to ensure that you make an informed decision.