It ultimately depends on how you have your Lease Purchase Agreement structured. My agreements are structured in such a way that if the Tenant/Buyer defaults, they forfeit their deposit and option credits. However, with that said, depending on the situation, you may want to provide some "flexibility" and review each (default) situation on a "case by case" basis.
Remember; the object of the exercise here is to create SUCCESS for your Tenant/Buyers, not set them up for FAILURE! There is a BIG difference between the two! Hope this helps?
QUOTE (fumbrunner @ Oct 5 2009, 09:42 AM) A quick question to the RTO gurus on the board. If a buyer backs out of a RTO agreement, does the landlord/seller keep both the option payment and the rental premium or does the rental premium get returned.
Thanks.