The North Carolina Lease Agreement with Option to Purchase is a document signed between a landlord and a tenant to begin the rental of a residential property, with the option to purchase the house at the end of the rental period or at any time before. As a general rule, a purchase price is negotiated at the beginning, while the property is leased, and this is the agreed price if the tenant (s) decides to buy the house later, at which point a percentage of the monthly rent is applied to the price. Pending this decision, the document acts as a normal lease of 12 months or more. All parties should read the document carefully. If part of the form is questionable, you can contact a lawyer to help you better understand your rights as a tenant and landlord. Please note: The Questions and Answers brochure to: Home Inspections, listed on this form, is available on the North Carolina Real Estate Commission website. The law in North Carolina came into effect to solve the problem that landlords would take a large option payment from a tenant, sign a lease and not pay the mortgage while they summed up the rent. I had one whose tenant was a heavily armed bounty hunter. The lender closed and the lender called me after her regular real estate agent called her in tears, after the bounty hunter explained that he would spend the rest of his life chasing her if she was involved in her eviction from the house. To say that he is angry is an understatement and, quite rightly, because he had paid thousands to the landlord in an option payment and had paid his rent with thousands more in advance.
I accepted the contract and everything went well. He doesn`t stalk me unless he wants me to help him buy a house in the future. Because of this situation, the NC law gives the tenant/buyer the right to terminate the contract and repay the payment of the option. If you are the one who buys the property with the lease/purchase, the termination provision is not a problem. If you or your client sell to a third party, there may be a problem caused by determining the repayment of the money option I have an LLC that buys real estate with leasing options and has been doing so for years. One of them is ten years ago. The use of leasing purchases or leasing options is highly regulated in North Carolina. Here`s a link to North Carolina`s rent-buying law. It is not difficult to design an agreement that is in accordance with the law, because the statute gives you a checklist, which is necessary. www.ncga.state.nc.us/EnactedLegislation/Statutes/PDF/ByChapter/Chapter_47G.pdf. In North Carolina, the real estate commission said that brokers cannot design leasing options and leases, you must hire a lawyer to avoid engaging in the unauthorized practice of law.
If you are buying a property with a leasing option, you just need to remember that the title is still in the seller`s name. If sellers receive a judgment against them, it may become a pawn on the property that could adversely affect the tenant/buyer`s ability to close the sale.