Legal Question in Real Estate Law in Illinois

subject

me and my husband are wanting to do a contract for deed on a house. the realtor said it would be a lease with option to buy. the realtor said we would need 500 dollars for earnest money which is fine but do we have to give earnest money when we are leasing to buy. the house is for sell. also the realtor said we would need 6,ooo dollars at closing.but why would we have to pay 6,000 dollars if we are leasing. we wouldn't be buying the house yet. do we have to pat this money now or at the end of our lease? is they realtor trying to get money out of us? please tell me what our options are and what we have to pay to lease for option to buy. thank you


Asked on 10/02/02, 9:31 pm

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: subject

If you want to purchase via a contract for deed, then write your offer that way. A lease is not the same animal. What the real estate agent is proposing is that you will be tenants for a certain period of time, after which you will be able to buy the house for a predetermined amount of money. Usually, a portion of your rent payment will be applied to the purchase price if you buy the house at the end of the lease. There are no rules as to how much you have to pay, nor as to how much of your payment will be applied to the purchase price. You would be well served to hire a real estate attorney in your area to protect your interests, not only regarding the terms of the agreement, but to ensure that title is clear and the property is owned by the person selling it to you.

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Answered on 10/03/02, 7:51 am


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