a lease contract with terms providing for transfer of
a process that combines a basic rental lease with an
a process where a rental agreement is combined with a purchase or an option contract
a sale of real estate where the closing will occur at a later date
a true sale, but with a delayed but predetermined closing date often six months or more in the future
This finance option is similar to hire purchase offering a flexible deposit, flexible repayment periods, and a flexible percentage of the purchase price can be deferred to the end of the agreement.
Allows a prospective purchaser to enter into a contract with a seller to purchase the home they are leasing and to close on the property at a later date. This can be done for different reasons such as the buyer not being able to qualify for a loan due to credit problems or not having enough money for down payment or closing costs. The seller may or may not apply part of the rent income to the borrowerâ€(tm)s down payment or closing costs.
Lease purchases correspond to installment purchases from an economic perspective. With every installment, the lessee has a greater claim on the property. The lease purchase object is capitalized in the accounts of the lease purchaser.
An installment sale which gives the lessee the right to purchase the equipment at an agreed upon price under certain conditions. Title passes from seller to purchaser if and at the time the option to purchase is exercised.
A full payout, net lease structured with a term equal to the equipment's estimated useful life. Because many Lease Purchases include a bargain purchase option for the lessee to purchase the equipment for one dollar at the expiration of the lease, these leases are often referred to as dollar buyout or buck-out leases. Lease Purchases are generally considered to be Capital Leases from an accounting perspective and non-tax leases from a tax perspective due to their bargain purchase option and length of lease term.
A type of delayed closing. The lease purchase contract sets the closing date and provides remedies to the seller if the buyer defaults.
A type of finance agreement which includes an option for you to buy the goods at the end of the hire period. It is also known as Hire Purchase.
The purchase of real property, the consummation of which is preceded by a lease, usually long-term. Typically done for tax or financing purposes.
Method of purchasing a rig (usually from a regulated carrier), whereby some of the rent paid to the carrier for the privilege of using the cab is applied to the principal owed by the owner operator.
Designed to assist low-to-moderate-income buyers - first they lease a home, then they can exercise an option to buy. Rent = monthly rental payment + additional money credited to a down payment account.
Often used interchangeably with the expression "lease option," but technically means a lease in conjunction with a bilateral purchase agreement. Often used by agents to mean a purchase agreement whereby the tenant takes possession prior to close of escrow.
Hire purchase as applied to a commercial lessee. Lease purchase is not a form of leasing, since title to the asset passes to the hirer (i.e. not the user).
a home buyer rents the home with the option to buy the home; their monthly payment includes the rent payment plus additional monies which is used towards the purchase of the house
As an alternative to outright purchase where the company regards eventual ownership as desirable. Legally, hire purchase but with a different rental stream profile.
A type of delayed closing. A lease purchase is drafted on a purchase and sales contract, setting the terms of the purchase, as well as a date for closing the sale. Should the buyer default, the seller has all of the remedies available under the sales contract.
A contract in which an owner leases his house (usually for one to five years) to a tenant for an increased monthly rent, and which gives the tenant the right to buy the house at the end of the lease period for a price established in advance, with the incremental rent increase being used to form a down payment. Buyers should be wary of this type of contract since they may lose their extra rent/down payment money should the owner suffer financial setbacks before the purchase has been completed.
assists low- to moderate-income homebuyers in purchasing a home by allowing them to lease a home with an option to buy; the rent payment is made up of the monthly rental payment plus an additional amount that is credited to an account for use as a down payment.
A variation on leasing, at the end of the lease period the goods become the lessee's property.