medium · National Real Estate Exam contracts
A buyer enters into a 'Lease with Option to Buy.' The lease payments are $1,200 per month, and 200 of that is credited toward the purchase price. This 200 credit:
- Is treated as a taxable gift from the landlord to the tenant each month.
- Serves as the monthly valuable consideration that keeps the option binding.
- Must be held in a federally insured escrow account until closing occurs.
- Is barred outright as a violation of the state's usury lending statutes and rules.
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