Lease Purchase gives renters a shot at homeownership—and we make it work. We collect rent, protect buyer funds, and ensure the seller’s mortgage is paid. We also send payment records to help buyers get loans later and help sellers if any issues arise.
It’s simple, clear, and built to support everyone involved. Whether you’re leasing to own or selling with a purchase option, we keep things on track and take the pressure off your plate.
We guide and manage lease purchase contracts with secure rent handling, escrow tracking, IRS reports, and default response, using our years of expertise to protect both parties.
We collect lease payments and track balances through automated systems.
We manage reserves and pay property expenses when required.
We provide accurate payment histories and help facilitate exercising the option through a refinance.
Formal notices are sent when payments are missed or delayed.
A Lease-Purchase Agreement (often called “Rent-to-Own”) combines a traditional lease with an agreement to purchase the property at a later date. In Louisiana, these are structured so that a portion of the monthly payment may go toward the eventual down payment or purchase price. Escrow Services Inc. acts as the neutral administrator to ensure every dollar is tracked and applied correctly.
While they share similarities, a Lease-Purchase is primarily a rental agreement with a deferred sale. A Bond for Deed is a specific legal contract where the title transfers only after full payment. Lease-purchases offer more flexibility in the early stages, and our team helps both parties choose the specific contract structure that best fits their financial goals.
In YMYL (Your Money or Your Life) transactions like real estate, transparency is vital. Using Escrow Services Inc. ensures that a neutral record of all payments exists. This protects the tenant-buyer’s “credit” for payments made and ensures the seller has an objective audit trail for tax and legal purposes.
Yes. Most traditional lenders require a “formal” payment history to count rent credits toward a down payment. Because Escrow Services Inc. provides professional monthly statements and an annual history, we provide the verified documentation that banks require to transition a tenant into a homeowner.
If your agreement includes a rent credit (where a portion of the rent is applied to the purchase price), we track these funds as a separate ledger. This ensures that when it comes time to “exercise the option” to buy, both the buyer and seller have an exact, undisputed figure for the remaining balance.
Typically, the owner (seller) remains responsible for these costs until the act of sale occurs. However, many parties choose to have Escrow Services Inc. manage an impound account where the tenant contributes to these costs monthly, ensuring the funds are available when the tax bill or insurance premium arrives.
The “Option Fee” paid at the beginning of a Lease-Purchase is generally non-refundable if the tenant chooses not to buy. Our records clearly distinguish between the non-refundable option money and the refundable security deposit, preventing legal disputes at the end of the term.
To protect the tenant-buyer’s interest, it is often advisable to record a “Memorandum of Agreement” in the parish where the property is located. This alerts third parties that the property is under contract. Our office can assist in facilitating the necessary documentation for this protective measure.
To protect the tenant-buyer’s interest, it is often advisable to record a “Memorandum of Agreement” in the parish where the property is located. This alerts third parties that the property is under contract. Our office can assist in facilitating the necessary documentation for this protective measure.
We manage the complex tax reporting associated with these deals. If a portion of the payment is considered interest or if there are specific reporting requirements for the seller, we issue the necessary 1098 or 1099 forms annually to keep both parties compliant with the IRS.
Sellers can often secure a higher purchase price and attract tenants who have a “pride of ownership” mindset. By using our professional servicing, sellers also eliminate the “landlord” headache of collecting checks and manually tracking credits, as we handle all the administrative heavy lifting.
It is a common path to homeownership for those currently unable to qualify for a traditional loan. The lease period allows the buyer time to improve their credit while locking in the property. Our professional payment receipts act as a “stepping stone” to help them eventually secure bank financing.
Getting started is simple. You can download our [Contract Intake Forms] or contact our team directly. We will review your existing agreement, set up the payment processing, and begin providing the neutral oversight necessary for a successful Louisiana real estate transaction.
