Becoming a real estate investor in California can be a lucrative proposition. It’s crucial to keep in mind that there are just as many cons as pros. You can make a great deal of money in a very short amount of time. You can also lose your shirt. One of the keys to your success may be a timely rental lease buyout.
Both parties must agree on a price
A rental lease buyout is permissible, if not common, under the terms of real estate law in the state of California. Before you can sign such an agreement, you and the seller of the home must agree on a price. Once you do so, there will not be a great deal of room for you to negotiate.
What you end up with once you sign on the dotted line is a home that you have legally agreed to buy. Unless you can prove fraud or some other illegal activity, the contract will be binding. Short of the contract being invalid, you must fulfill your end of the deal. If you try to sue, you’ll most likely lose.
Certain types of deals can be negotiated
You may be able to agree on a deal that helps both parties avoid litigation for emotional distress due to breach of contract. The deal you sign can take the form of a lease with the option to buy. In this case, there may be no contract. You can have the home appraised to gauge its value.
You can also try to buy the home before the lease is up. In most cases, the seller will only agree if you pay the rest of your lease in one installment. Since this may be a huge amount to come up with, it doesn’t happen often.