Lease Purchase Solutions, Ltd.

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Lease Option Procedures

  • First, the Tenant-Buyer signs the 12 month Lease Option.  This is where you grant him the right to purchase the property in 12 months and where he agrees to pay your asking price. 
  • We use either the California Association of Realtors® “Lease and Option to Purchase Agreements” or our own Standard Agreements.
  • Once the Lease Option Agreement is signed by the Tenant-Buyer we collect our fee from him and we assign the agreement to you.  (You pay no fees—none whatsoever.)
  • Next, the Tenant-Buyer will give you a security deposit and then pay your monthly lease amount.  He will continue paying the monthly lease until either he exercises his option to purchase or until the lease term expires.
  • If the Tenant-Buyer wants to extend the Lease Option beyond the first 12 month term:
    1. He will pay you a 5% increase in Monthly rent; and
    1. The price of his purchase option will be increased by the greater of the following:
      •  5% of the purchase price, or,
      • 50% of the percentage increase in the value of the average homes in the zip code where your home is located; and
    1. He will pay an additional 1% to 2% of the new Option Price.
      • This amount will be applied toward the purchase price of the property if the Tenant-Buyer exercises his option to purchase.
      • In the event that he does not exercise his option, you can keep this money, because it is non-refundable.
  • When a sufficient period of time has passed, the tenant-buyer will qualify for his loan, the funds will be disbursed, and you will receive your full sales price.   A Lease Option (Rent 2 Own) is a creative financing technique for property owners that enables them to sell their home quickly for their FULL Fair Market Value asking price.
  • Many lenders consider a Lease Option seller financing and will allow the tenant buyer to get a refinance loan instead of a Purchase money loan thus saving the tenant buyer the need of coming up with a down payment in addition to the Option consideration he has already paid.




Best of Success,

Gar C. May  
Real Estate Broker

Lease Purchase Solutions, Ltd.