lease- purchase --escrow questions et al
We are looking to sell our home and current neighbors have expressed an interest. We have not put it on the market yet.
I'm guessing that they are going to propose a lease purchase agreement. I'm trying to educate myself a bit before hiring an attorney (which we will do if they do indeed make this type of offer and I haven't found any non starters).
What I'm not sure about is if the up front money must go into escrow. It seems to me it is more or less a down payment, that is deducted if the deal closes and is forfeited if it doesn't.
I have the same question with the additional rent collected above market rent to go toward the purchase of the home. Now if the money were going towards closing costs, then I understand why it would need to be escrowed.
I see it as no need to escrow because if the deal closes it is a line item reduction, and if it doesn't then they don't get their money back anyway. Right?
I guess I'm trying to see if there is any other benefit for me the seller. My Mortgage, taxes and insurance are going to be pretty close to market rent. So I am not making any money on the "rent" part of the house.
Of course one in the hand is worth two in the bush...