May 11th, 2019 9:10 AM by Linda Holley
Good morning, and thanks for reading my blog.
Last fall I had Buyers who wanted to move to Florida but needed to sell their out-of-state home before buying here. We did a lease-purchase giving Seller his asking price for the home and allowing several months for the Buyers to sell their home.
Currently I have a listing for a 2 bedroom 2 bath condo on Siesta Key in Harbor Towers. At one of my open houses, a guest expressed interest in a lease-purchase. The Seller said no but later reconsidered after a few months of getting offers well below what he would accept, The potential Tenant/Buyer made him a full-price offer (gave him his asking price) and put up a good deposit, so this was financially advantageous to the Seller. He's getting market rent for his property, which will meet his expenses. Tenant/Buyer is locking in a sale price and can gain future appreciation on the property over the next two years. He's not ready to buy and won't be for at least 18 months; however, Harbor Towers is perfect because his boat is parked on-site in the community boat slip. He is thrilled that he can sit on the lanai from this unit and watch his boat.
In both of my lease-purchase transactions, Buyers are relocating to be near family members. And a boat. :-)
Lease-purchases are the exception but they can work if the Seller can wait to sell his property. They are much easier for Realtors to negotiate if both parties to the transaction work together to negotiate the terms. Once an agreement has been reached, Buyer should use always an attorney to prepare the document. Buyers will have legal representation through this process but it costs between $500 to $750.
Earnest Money Deposit. In both of my recent lease-purchases, Sellers wanted a sizeable deposit--non-refundable--to take their home off the market.
Disclosures. Buyers should obtain the Sellers Disclosure and other information about the community such as Lead Based Paint, homeowners association/condo fees, rules, and regulations. Buyers should learn as much as they can about the community and issues they are facing such as future assessments for repairs.
Homeowners Association Approval. Find out if this is a requirement. Most of the time, Board of Directors expect to be kept informed about who ls living there and who is buying. They charge from $50 to $100 for a credit check.
Other considerations: Buyer for the Siesta condo wanted to use the boat slip and install a washer/dryer. Who will pay? Buyer! But this is another gray area that needs to be negotiated and contained in the lease-purchase agreement.
These are the things Sellers and Buyers need to consider if they believe a lease-purchase is a possibility. Both Sellers in this case were willing to do this with a generous/good faith earnest money deposit.
Happy to help you with your real estate needs, whether you are buying a single family home in Venice or a condo in Sarasota or Siesta Key.
Most sincerely yours,
Linda Holley, Realtor, GRI, Michael Saunders & Co. 941-914-4914
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