Real Estate:Hire, how does it work?
Feb 22, 2009
The "lease" of home ownership is particularly promoted when buyers the financing does not work. Here is an alternative model.
The concept of "lease" is used in the real estate industry, unfortunately, is uneven and sometimes misleading uses. Often it is a hire-purchase agreement. This applies if the seller and the buyer a purchase agreement, under which agreed that the purchase price in monthly or annual installments to be paid.
The seller assumes practically the function, which under normal circumstances the bank would be assigned to the purchaser - with all the consequent risks. What happens, for example, if the economic situation of the buyer is deteriorating, price rates are not paid and the buyer is the subject matter already inhabited?
Also for the purchaser holds such a contract risks. This is especially true when the subject matter of the contract with the seller's debt burden is caused by the purchase price rates are to be eradicated.
Then it is important to ensure that the rates paid by the seller not be used for other purposes. Whether and how these and other risks within the framework of the contract can be reliably turned off, explains in the context of the required notarization to the notary.
Then it is important to ensure that the rates paid by the seller not be used for other purposes. Whether and how these and other risks within the framework of the contract can be reliably turned off, explains in the context of the required notarization to the notary.
The same goes for leasing in the strict sense. Typical of these is the conclusion of a lease with the option or obligation of the lessee, the contract object to a certain date or within a certain period of time to buy. The first cliff is already here, if it applies, the statutory form observed. Although it is a lease that requires this due to the sale or contained purchase obligation of compulsory notarization. Failure to comply with this form leads to the ineffectiveness of the entire contract with fatal consequences for all involved.
It is also important that the contract already concluded arrangements for detailed design of the sales contract must contain, as otherwise the dispute about the consequences of the exercise of the option is imminent. As a rule, therefore, constitutes a complete purchase a part of the agreement, which only exercise the option in force. Are these cliffs successfully overlooked, there are many other questions: How can the risks be hedged, resulting from a change in the economic data for the seller or buyer in the contract revealed? How and in what amount the agreed rent on the agreed purchase price? What influence does the inflation?
What happens if the tenancy prematurely or unexpectedly ends? These and other questions will need under the contract to be clarified.
The lease is not a miracle construction, with each potential buyer of the purchase and the seller each sale of its property is possible. It is much more, in each concrete case to consider whether a contract even without construction financing through a commercial bank allows a real estate business can be and the associated risks for all parties to remain manageable and predictable.
Currently, hire models, which happen to me utopian. I've heard of a website the following information.
For the willingness to pay a leasing-purchase of the leases 2% annual fee, and otherwise the purchase price in steady rates over a period of 30 years in installments repaid.
If this is so true, it is a loan with a 2% annual interest. That's what I call awesome.
Who has money to give away?
In my own property - Podcast
http://www.podcast.de/podcast/2705/immobilen_podcast
I should hire the model in detail.
Contact person: Roger Kanzenbach
Website: www.baumarketing.org
The concept of "lease" is used in the real estate industry, unfortunately, is uneven and sometimes misleading uses. Often it is a hire-purchase agreement. This applies if the seller and the buyer a purchase agreement, under which agreed that the purchase price in monthly or annual installments to be paid.
The seller assumes practically the function, which under normal circumstances the bank would be assigned to the purchaser - with all the consequent risks. What happens, for example, if the economic situation of the buyer is deteriorating, price rates are not paid and the buyer is the subject matter already inhabited?
Also for the purchaser holds such a contract risks. This is especially true when the subject matter of the contract with the seller's debt burden is caused by the purchase price rates are to be eradicated.
Then it is important to ensure that the rates paid by the seller not be used for other purposes. Whether and how these and other risks within the framework of the contract can be reliably turned off, explains in the context of the required notarization to the notary.
Then it is important to ensure that the rates paid by the seller not be used for other purposes. Whether and how these and other risks within the framework of the contract can be reliably turned off, explains in the context of the required notarization to the notary.
The same goes for leasing in the strict sense. Typical of these is the conclusion of a lease with the option or obligation of the lessee, the contract object to a certain date or within a certain period of time to buy. The first cliff is already here, if it applies, the statutory form observed. Although it is a lease that requires this due to the sale or contained purchase obligation of compulsory notarization. Failure to comply with this form leads to the ineffectiveness of the entire contract with fatal consequences for all involved.
It is also important that the contract already concluded arrangements for detailed design of the sales contract must contain, as otherwise the dispute about the consequences of the exercise of the option is imminent. As a rule, therefore, constitutes a complete purchase a part of the agreement, which only exercise the option in force. Are these cliffs successfully overlooked, there are many other questions: How can the risks be hedged, resulting from a change in the economic data for the seller or buyer in the contract revealed? How and in what amount the agreed rent on the agreed purchase price? What influence does the inflation?
What happens if the tenancy prematurely or unexpectedly ends? These and other questions will need under the contract to be clarified.
The lease is not a miracle construction, with each potential buyer of the purchase and the seller each sale of its property is possible. It is much more, in each concrete case to consider whether a contract even without construction financing through a commercial bank allows a real estate business can be and the associated risks for all parties to remain manageable and predictable.
Currently, hire models, which happen to me utopian. I've heard of a website the following information.
For the willingness to pay a leasing-purchase of the leases 2% annual fee, and otherwise the purchase price in steady rates over a period of 30 years in installments repaid.
If this is so true, it is a loan with a 2% annual interest. That's what I call awesome.
Who has money to give away?
In my own property - Podcast
http://www.podcast.de/podcast/2705/immobilen_podcast
I should hire the model in detail.
Contact person: Roger Kanzenbach
Website: www.baumarketing.org
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