Lease Purchase

Our Atlanta real estate attorneys help buyers and sellers across Georgia create lease-purchase agreements that comply with state law and protect their interests.

Buying a home can be challenging, and the path to homeownership is not always straightforward. Some buyers may not yet have the down payment, strong credit, or readiness to commit. At the same time, sellers may want to sell a property but need time to complete improvements. In Georgia, a lease-purchase agreement can provide a solution that benefits both sides but only if it is carefully drafted and fully compliant with state law.

At Thrift McLemore, our Atlanta real estate attorneys help buyers and sellers across Georgia understand, negotiate, and draft lease-purchase agreements that protect their interests and reduce the risk of costly disputes.

What is a Lease-Purchase Agreement?

A lease-purchase agreement is a legally binding contract that combines a rental period with a commitment to purchase the property at the end of the lease term.

When the agreement is signed, the purchase price is established, along with details such as the down payment and payment credits. Often, a portion of each monthly lease payment is applied toward the purchase price. This arrangement allows the buyer (lessee) to work toward ownership while the seller (lessor) prepares for the sale.

What is the Difference between a Lease with Option and a Lease-Purchase Agreement?

While similar, there is an important difference:

• Lease with Option: The tenant has the right, but not the obligation, to purchase at the end of the lease.

• Lease-Purchase Agreement: The tenant is required to purchase the property under the agreed terms once the lease period ends.

Understanding this difference is critical before signing an agreement, as one locks you into a purchase while the other provides flexibility.

Legal Requirements for Lease-Purchase Agreements in Georgia

Georgia law sets specific requirements for valid lease-purchase agreements. To be enforceable, the agreement must:

• Be in writing and include a description of the property

• State the total amount of any initial payment, including down payments or trade-ins

• Clearly outline the timing and amount of lease payments

• Itemize all additional charges not included in the monthly payments

• Define which party is responsible for maintenance, damages, or loss

• Explain the lessee’s right to reinstate and any penalties for doing so

• Include termination conditions and the total cost of the lease

• State whether a manufacturer’s warranty passes to the buyer

• Provide the estimated fair market value of the property at the start of the lease

Georgia law also prohibits certain unfair terms, such as wage garnishment, waiving defenses against the lessor, or repossession charges that exceed state limits.

Is a Lease-Purchase Agreement Right for You?

A lease-purchase agreement can be beneficial when:

• A seller is ready to sell but needs time to prepare the property.

• A buyer wants to purchase but needs more time to save or improve credit.

However, poorly written agreements can create significant risks. A well-drafted contract ensures compliance with Georgia law and protects both parties’ rights.

Why Work with an Experienced Atlanta Lease-Purchase Agreement Attorney

Our attorneys guide buyers and sellers through every stage of the process, including:

• Drafting and reviewing lease-purchase agreements

• Explaining legal obligations and potential risks

• Negotiating terms to protect your interests

• Ensuring agreements meet Georgia statutory requirements

• Helping prevent disputes that could lead to costly litigation

By involving an experienced attorney early, you avoid pitfalls and ensure the agreement reflects your goals.