You may be what we call the "renter" - you wish to own your home but are unable to afford the down payment.  We can help you move into your dream home and pay for it in easy, monthly installments, just like rent, while you improve your financial situation and buy the home at a later date.

On the other hand, you may be what we call the "investor" - you are willing to help the "renter" by buying the home yourself, and giving the "renter" a Lease Option (i.e. an option to buy the home from you at a later date for a given price).  Meanwhile, you receive monthly payments consisting of a portion for the rent and a portion that acts as a pre-payment towards the purchase price (the down payment).

Example of a Typical Lease Option Transaction

Mr. & Mrs. Tenant decided that they would like to Lease Option the house on 123 Main Street because it fits all their criteria for a home.  The house is currently renting for $1,200 per month, but they agree to pay $1,500 per month to Lease Option the house from the investor, Mr. & Mrs. Seller.  The difference between the current rent and the lease option rent is $300.  The $300 per month is the pre-payment portion of the rent that Mr. & Mrs. Sellers and Mr. & Mrs. Tenant agree on to be credited towards the purchase price as a down payment when the Lease Option is exercised.

Mr. & Mrs. Tenant fill out a Rental Application and submit to Mr. & Mrs. Seller, or their agent.  Within a couple of days Mr. & Mrs. Seller or the Agent approve or disapprove the application on condition.

If application is approved Mr. & Mrs. Tenant and Mr. & Mrs. Seller then enter a Lease Option Contract.  The price, term, and conditions are all specified in the agreement.  It also states that if Mr. & Mrs. Tenant default in anyway or fail to exercise the option at the end of the term then all the Rent Credit, which would have been the down payment, will be forfeited.

Mr. & Mrs. Tenant must secure their own financing at the end of the contract term, since this is not Mr. & Mrs. Sellers’ responsibility.  Note that financing is not a condition of this contract term for Mr. & Mrs. Tenant.  Mr. & Mrs. Seller or their Agent may assist in the process to sell the property to Mr. & Mrs. Tenant at which point Mr. & Mrs. Tenant would take possession of the house.  This can be done immediately or as agreed by all parties.

About six months before the lease expires if Mr. & Mrs. Tenant decide to exercise their option to purchase the property.  At this point, the sale agreement is signed by all parities involved.

It is then placed in the hands of their respective lawyers to close the transaction and the specific date with all adjustments being made including the rent credit.

Mr. & Mrs. Tenant are now proud homeowners and have made one of the most important investments in their lives.

To learn more about Lease Options, pick up the book, "Profiting with Lease Options", which is available in the Publications section of our website.

Whether you are the renter or the investor, CANREIG can help you make a deal by matching you with the other party.  Just click on the Get Started option below.