Advantages and Disadvantages in Property Leasing

Property Leasing Advantages:

• Banks are not required


• You and seller can speak about the deal terms


• Quick closing within 7 days and low costs for closing


• Seller can get a good interest every month


• Buyer can build up equity and create a good cash flow

Property Leasing Disadvantages:

• Foreclosure of the property is easy for seller if buyer does not perform as per agreement


• It may result in a due-on-sale problem on the existing mortgage of seller


• Seller may not be able to perform his end of the agreement


• Foreclosure by seller is easy if buyer does not perform per lease agreement


• It may trigger a due-on-sale clause on the seller's existing mortgage


• Seller may not perform his end of the agreement

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