If you take a lease option to purchase get a large down payment rent should be no less than 10% of the price and do not pay the realtor untill the option is exercised you also need to check the credit make sure they have been preapproved and then figure they are renters because you just became a landlord.

RB - every now and then the ole "grey matter" kicks in. :-)

"you might be safer to go with a Purchase with rent."
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Heck, that's better than a lot of legal advice. Good one Alan.

I am not an attorney so this should not be construed as "legal advice":

you might be safer to go with a Purchase with rent.

the difference is that as a lease option, you're giving them the OPTION to purchase your home, after a rental period. This gives them the "option" of NOT buying it. You don't want that.

In my version, you're signing a contract that states that they're going to BUY your place, at a specified price... but they will rent it for $XXXX. until their place sells (within a specified period of time).

You probably mean what is referred to in the article attached to the link below. Don't even begin to go into any kind arrangement such as this without a good RE attorney. Under this scenario, you are a landlord still being responsible for the property and taxes, including income. Should the potential buyer default, you then have to worry about getting them out hoping there is something left of the house. BTW, I really dig the Bel Airs
( http://www.belairs.com/bio.html ) and GO CARDINALS!!

http://homebuying.about.com/od/financingadvice/qt/091007_lea…