This oil, gas, and minerals document is a report form documenting information of sellers and purchasers that enter into a legally binding obligation to sell and purchase real property at the expiration of or during a lease term. In a lease purchase agreement, a party agrees to purchase a particular piece of real property within a certain timeframe, usually at a price determined beforehand.
Kentucky Lease Purchase Report
Category:
State:
Multi-State
Control #:
US-OG-641
Format:
Word;
Rich Text
Instant download
Description
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FAQ
Once a business entity or individual is deemed to be in the business of renting real property, all of the real property rental income is subject to the Occupational License tax, regardless of the property class or annual gross rental receipts.
The vehicles you report should have regular type registrations where property taxes are payable to the county clerk in the county where the vehicle is customarily kept. If leased vehicles are reported the public service company, as lessee, must be responsible for paying the motor vehicle property tax.
The renter has a chance to buy a property in the future at today's prices. If the renter doesn't have the money saved today to buy the home but is worried the home's value will increase in the next few years, the lease option is a good choice.
Cons of a Lease Purchase Agreement for Buyers Loss of down payment and option fee: If the buyer can't improve their finances enough to qualify for a mortgage by the sale date, they forfeit their option fee and additional rent payments (if any) to the seller.
Pros of Selling Your Home as a Lease With a Purchase Option Gives the seller time to find the right buyer: With a lease-purchase option, the seller can take their time finding the right buyer, rather than feeling pressure to sell their home quickly.
The lease purchase also buys time for a potential buyer to repair their credit and save up for a down payment toward a conventional mortgage prior to the expiration of the option. The length of the option can be negotiated and a longer term gives the buyer more time to get things in order.
Let's say a renter is paying $2,000 a month on a $250,000 home, and $400 per month goes toward a down payment. At the end of a 24-month lease, the buyer has the option to use $9,600 as a down payment of 3.8%, just above the minimum for most mortgages.
Buying a home offers stability and potential tax benefits that renting does not. Plus, homeowners might be able to build equity. ing to the U.S. Census Bureau, 65.8% of Americans are homeowners.
