Importance of Middleman in a Lease Purchase Agreement

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It is true that the deals involving the middlemen have been completed more successfully than the deals without a middleman. This is true in the Lease Purchase Agreement also. These agreements must not be started without involving a middleman because leasing home or taking a home on lease without a middleman is like jumping into the well without a rope. So if the height of the water level is not more than you, you are safe but if height is more than your expectations then you never know what will happen next.

Concept of Lease Purchase

A Lease Purchase Agreement is a written legal procedure that is used to start an agreement between the two parties. The first party is the homeowner who is ready to sell his or her home through leasing and the second party is the tenant who wishes to buy a home for his or her family through leasing. Both the parties if agree to the conditions of the deal must sign the agreement to start this legal procedure of buying and selling a home. Both the parties will agree to the conditions only if the agreement talks about the rights and safety of both parties in the deal. So this is where the role of an agent or middleman comes.

Why the two parties need an agent?

The two parties need an agent because he is responsible to bring only those two parties in contact, the buying and selling requirements of whom match each other. The agent is responsible to listen to the selling or leasing requirements of the homeowner and search a tenant or buyer accordingly. This person must come with that buyer or tenant only who is ready to accept the conditions of the homeowner. The same responsibility of the agent is towards the buyer or tenants also. The agent must bring only those homeowners in contact with the Lessee or buyer who are ready to give their home on lease with the conditions that the Lessee or buyer could follow.

Role of the Real estate Lawyer

An agent or real estate broker can help both parties to start a Lease Purchase Agreement by suggesting the important conditions that favor both parties. The broker could take help of a real estate lawyer to write the legal language of the terms and conditions in the agreement favoring both parties. After the agreement is prepared, both parties can sign it and start the deal. Both parties must pay commissions to the agent for the middlemen services. This is how a real estate broker with the help of a real estate lawyer helps the two interested parties to communicate and start the deal.

Source by Nitesh Pandey

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