Down Payment Installment agreement - Lease Options,
The implications of signing a down payment instalment agreement
When you are a tenant and want to buy the property you can opt for the down payment installment. Generally when you buy a property you need to give some down payment and the rest of the amount can be given through bank loan. But if you are not in a position to give the down payment as a whole and you are also a tenant at the property then you can opt for paying the down payment in installment.
To carry out this kind of arrangement you need to sign a down payment installment agreement with your land lord. Generally you tend to pay this instalment along with the rent every month but there are clauses that you must abide by
First of all this agreement is time bound. If you fail to make the purchase in that stipulated time frame the agreement may be considered void
The amount that you deposit as the down payment instalment will only be valid if you make the final purchase but if you default or decide not to buy later the down payment made till date will be considered void. And the amount will be forfeited.
You are not bund to make a purchase as you have purchased the option of buying the property in the stipulated time period. However, if you decide not buy the property, there will no bindings on you. at this juncture the agreement just cancels by itself and you walk free, but your money will be forfeited
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