This article is part of the Ready to Buy series, which focuses on the key issues that potential home buyers need to understand as they work through the purchase process.
Leases are contracts, and it’s important for tenant considering a purchase to understand the key terms of their lease.
Find the document, and start by looking at the expiration term. If you want to stay longer, does it go month-to-month, or does it roll into an entirely new term of one year, or even longer?
Next, try to find any terms about breaking the lease. If you want to get out of the lease early, is there a clause that lets you break the term, either by paying a penalty or by some other mechanism?
You should review the entire document to remind yourself what it says. Landlords put all sorts of things in there, so you need to understand everything about the contract.
If you’re looking to buy, and renting right now, then it’s important to understand how you are going to exit your lease contract.
Good luck with your search, and remember that I’m here to help when you need me. Have a great day!