Depending on your situation, a lease option is a great way to sell your home. If you do not require all the money from the sale of your home right away, you could benefit from a lease option as it is a great means of obtaining cash flow and you can sell your house for more at a later date. In addition, you can benefit from the following aspects of the lease option:
The option deposit/option money received is tax-deferred. You will not have to pay taxes until the option is exercised or forfeited.
Monthly payments for lease options are usually above fair market price and are usually paid on time since if it is not, the optionee forfeits the option.
The optionee will likely take care of the house like it is his/her own since he/she will likely own it eventually.
You can have your house paid for if you do not have enough equity in it to sell it the conventional way.
There are also no real estate agent commission fees to pay.
The sale price in 2-4 years will usually be substantially higher than the current value if you were to sell your home today and, in some cases, the optionee is usually willing to pay more for the right to buy at a fixed price.
You can still receive some money upfront (the option deposit) which you set. It can be any amount you think is fair considering the property and the monthly payment. The norm is two months of the regular monthly payment, but this is up to you.
Maintenance and repairs should be done by the optionee therefore there are little "landlord" type headaches.
You set the monthly payments so that they cover your property expenses and that you have a cash flow.
It is typically safer to have the property occupied with someone that has the intent on buying the property rather than renting to tenants.
The option deposit/option money is non-refundable.
You're helping people realize the value of homeownership sooner and giving them the possibility when traditional finance companies have refused them.

Depending on your situation, a lease option is a great way to sell your home. If you do not require all the money from the sale of your home right away, you could benefit from a lease option as it is a great means of obtaining cash flow and you can sell your house for more at a later date. In addition, you can benefit from the following aspects of the lease option:
The option deposit/option money received is tax-deferred. You will not have to pay taxes until the option is exercised or forfeited.
Monthly payments for lease options are usually above fair market price and are usually paid on time since if it is not, the optionee forfeits the option.
The optionee will likely take care of the house like it is his/her own since he/she will likely own it eventually.
You can have your house paid for if you do not have enough equity in it to sell it the conventional way.
There are also no real estate agent commission fees to pay.
The sale price in 2-4 years will usually be substantially higher than the current value if you were to sell your home today and, in some cases, the optionee is usually willing to pay more for the right to buy at a fixed price.
You can still receive some money upfront (the option deposit) which you set. It can be any amount you think is fair considering the property and the monthly payment. The norm is two months of the regular monthly payment, but this is up to you.
Maintenance and repairs should be done by the optionee therefore there are little "landlord" type headaches.
You set the monthly payments so that they cover your property expenses and that you have a cash flow.
It is typically safer to have the property occupied with someone that has the intent on buying the property rather than renting to tenants.
The option deposit/option money is non-refundable.
You're helping people realize the value of homeownership sooner and giving them the possibility when traditional finance companies have refused them.

There are some disadvantages of working with lease options. Obviously the goal is to find someone to lease your property for a certain period of time and then have that same person buy it, but this does not always happen. In addition, the decision of buying or not is in the hands of the optionee. As the optionor/homeowner, you have to wait to see if the optionee is going to exercise their option to buy and if they do, you have to sell it to them. In addition, if you need the money right away from the sale of the property, you cannot get it - you'll have to wait until the property sells (although there may be ways around this - speak to a qualified mortgage agent link to www.canadianhomeownership.com to see how you can overcome this situation). Some other disadvantages may be:
You still have to make monthly payments to the mortgage (if any on the property), insurance, property taxes, etc.
You have to work with the optionee (it's in your interest to do this) to ensure they're taking necessary steps to help them qualify for a mortgage to buy the property. If they don't qualify, your property isn't sold.
If the optionee decides to buy and has the house inspected, any problems that come up will have to be fixed which is something that you, the homeowner, and the optionee then have to negotiate. This might be an unexpected expense for you.

You could, but this way you get income each month from your optionee, plus a deposit. Your monthly expenses should be covered by the monthly payments the optionee is paying. And, should the optionee exercise his/her option to buy, there will be no real estate commission fees to pay since you will be selling the home as a for sale by owner (unless the property is being sold using a realtor).

Note that the term of the lease option is negotiable. But consider the fact that some people will need time to qualify for a loan or save up for a down payment or rebuild damaged credit.

There is no problem working on your own to find an optionee for your property; however you may not have the time or expertise in screening people, working with credit repair or negotiating terms. Working with an experienced lease option investor through Canadian Homeownership, you can have a lot of the typical headaches removed and benefit sooner from cash flow with your property.

Yes lease options are legal. They are legal anywhere that has a free-market economy where lease and option agreements are legal. Some people will say that they are not legal; however this statement usually comes from a lack of knowledge.

Absolutely not! The beautiful thing about lease options is that they work in both hot and cold markets, and anywhere in the middle.

You can, however you might have a more difficult time finding an optionee for your place. Most of the time, optionees are looking for a move-in condition property. You can still list your property and find a successful candidate for an optionee. Remember when posting your listing with us that you include in the homeowner comments that your property needs some work. We suggest that you also factor this in when entering in a monthly payment and purchase price.

This can be done in a few different ways, however the common practice is to use an appreciation value based on the market values of the area over a certain period of time (the last 5 years for example).

If you decide to sign up as an Investor, you will have these provided to you as part of our services to you. If you decide that you'd rather just list your home, you can purchase the contracts from our site under Forms and Agreements (Link to resource section forms and agreements).

Canadian Homeownership does its own marketing and works with people who have a vested interest in lease options. We are a niche market where as other classified rental or for sale by owner sites are broader in range. In addition, Investors with us are constantly looking to match up optionees with homeowners, so you've got a sales force out there working to find someone that wants your home. If you like the idea of lease options and want to sell your home this way, then you've come to the right place!