Property Management
Indiana's 'rent-to-own' property agreements combine features of:
AA lease and a traditional mortgage
BA lease and an option to purchase✓ Correct
CA land contract and a trust deed
DA management agreement and a purchase contract
Explanation
Rent-to-own (lease-option) agreements combine a rental agreement with an option to purchase the property at a specified price within a defined period, often with a portion of rent credited toward the purchase price.
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Key Terms to Know
Option Contract
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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