Thursday, January 20, 2005

Personal finance Q&A

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Question: What are the key elements of a lease option?

Answer: The lease option is a written agreement and should contain three main elements: the cost of the property at the time the option is exercised, the percentage of monthly rent applied directly to the purchase price and term of the option period. When a landlord offers a tenant a lease option, he is offering you the chance to purchase a property for a specific price within a certain time frame. Most of the time, lease options are requested by a potential buyer because the buyer does not have enough funds for a down payment and closing costs. If the landlord is offering, seriously consider accepting.

• Tip:Take the time to protect your assets. Estate planning is a term to describe organizing your financial affairs so that money, property and other assets can go to your heirs in an efficient manner.