What are the disadvantages of being a lease-purchase buyer?

Answer by  Dean (4035)

Most lease-purchase agreements don't work out. Generally, the issue that prevents the buyer from buying the property in the beginning (e.g. poor credit, insufficient income, etc.) doesn't resolve within the deadline (12 - 36 months) afforded the leasee. Very often a large deposit is required upfront and is forfeited if the buyer cannot secure financing for the purchase.

Answer by  HilaryC (1382)

I'm assuming you mean rent to own? A disadvantage is say you were paying rent for 10 years and were close to paying off the house, but ran into trouble. Unless the seller granted you leeway, you would lose the house and all the rent you paid.