What is the Lease Purchase strategy?

a) The buyer leases the property for a specified term with the option to purchase.

b) The buyer pays a down payment to the seller and assumes the existing mortgage.

c) The buyer and seller agree to a seller carry back arrangement.

d) The buyer takes over the property subject to the existing mortgage.

What is the term of the lease in a Lease Purchase transaction?

a) 6 months

b) 12 months

c) 24 months

d) The lease term varies depending on the agreement.

What is the buyer's responsibility during the lease period in a Lease Purchase agreement?

a) Making monthly lease payments to the seller/landlord.

b) Maintaining the property and paying for utilities and other expenses.

c) Deciding whether to exercise the option to purchase.

d) All of the above.

What does the Lease Purchase agreement include?

a) The terms of the lease, such as the monthly payment amount.

b) The option for the buyer to purchase the property at the end of the lease term.

c) The terms of the purchase, including the purchase price and financing arrangements.

d) All of the above.

True or False: The buyer is obligated to purchase the property at the end of the lease term in a Lease Purchase agreement.

a) True

b) False

What happens if the buyer chooses to exercise their option to purchase in a Lease Purchase agreement?

a) The necessary steps for closing and transferring ownership are initiated.

b) The seller provides additional financing for the buyer's purchase.

c) The buyer assumes the seller's existing mortgage.

d) The lease term is extended for another year.

Who is responsible for maintaining the property during the lease period in a Lease Purchase agreement?

a) The seller/landlord

b) The buyer/tenant

c) The lender

d) A property management company

What is the purpose of the down payment in a Lease Purchase transaction?

a) To reduce the remaining purchase price.

b) To cover the seller's outstanding mortgage balance.

c) To demonstrate the buyer's commitment to the agreement.

d) To pay for the property's maintenance and expenses.

What legal documents are typically involved in a Lease Purchase transaction?

a) Purchase and Sale Agreement

b) Lease Agreement

c) Option to Purchase Agreement

d) All of the above

Where does the closing typically take place in a Lease Purchase transaction?

a) Seller's attorney's office

b) Buyer's attorney's office

c) Title company's office

d) Real estate agent's office