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Who typically collects the rent in a Lease/Option agreement? I am wanting to put together a Lease Option Agreement on my property that has 2 homes on it - a main house and a cottage. The potential buyer will live in the main house, and the cottage can be rented out - Who collects the rent on the cottage until the option is exercised? The Landlord/Seller or the Lessee/Potential Buyer?

What are the typical provisions of a lease/option agreement? i.e. Down Payment, Rent, etc.? I am currently renting and a home across the street has recently become available for sale by owner. I have recently applied for a mortgage but my approval requires me to complete several items that may take a few months.I approached the owner with the possibility of a lease/option agreement so I may move into the home and leave the rental property. The owner mentioned today an option "fee" of $7,500 and monthly rent of $1,500 with a final purchase price of $173,900. Does the option fee typically get applied to the purchase price when I complete the sale? Should I request a percentage of my rent to be applied to the final purchase price as well? I haven't received any of the paperwork yet but just wanted some ideas. I am new to this.

How do you sell a house using a lease option agreement? I want to lease my home with an option to purchase. I want to know if I can do this by myself or if I need a realtor. I know how much I want for selling price, option payment and rent per month. Thanks in advance.

Can a land owner in a lease option agreement change their mind about selling? As a land owner with renters who are in a lease option contract with us - can we legally change our mind about selling the house, refund their money, and keep the house as long as we exercise the option before they agree to purchase? What kind of contract verbage do I need to use to include the "change of mind" option? I understand the suggestion to seek legal cousel but that is not my question. Neither is the opinion that I dont need it. I would really appreciate an answer to my question.

I want to stop renting and get a lease/option agreement property in the california without getting burned?

What is the difference between a Land Contract and a Lease Options agreement? My cousin is a Real Estate Investor and he is trying to help a family sell there home. They told him that they do not want to do a Land Contract, because they are afraid they won't qualify for a mortgage? Is there anyway for them to get around this? Also, he said when he spoke to them on the phone, He mentioned a lease option, not a Land Contract. How could he explain the difference? What do you think would be the better option, a lease option or a land contract? Why do you feel that way?

I a lessee wants out of his lease option agreement and improved the home but also removed fixtures ? 7 mos into a 12 month option lessee wants out. His home has not sold and he has asked me to resell the home but wants to stop paying lease. He also improved the house with out written permission garage doors/replace brand new carpeting with lighter color removed wood burning fireplace and a new propane stove along with the brick work under both stoves. he rplace those units with plug in fake fireplaces nice but ? he also installed a stackable w/d reventing etc. he has offered to give up the $5,000 option he has never lived in the home only was getting it ready when he did move in thye market is such that in this resort towne I may or may not be able to resell or lease quickly. what are my options thank you

will someone explain why the standard lease/option agreement violates the due on sale clause in loans?

Will I have to pay capitol gains on a property I just bought but lived in for two years with a lease-option? two years ago a friend and I bought and moved into a house together with a tic agreement, and then we created a lease option agreement between us that I would buy his share of the house after two years. This was a contract between him and I and it wasn't notarized. I gave him a non-refundable down-payment and I pay the mortgage. Now as am am about to get the financing to buy his share out-right. Then I would like to sell the house. Will I have to pay capitol gains tax on profits from my partner share that he sold to me, considering I only just outright bought the house, even though I have lived there for two years and agreed to buy it two years ago and payed him some then and payed the mortgage since?

what is a lease option agreement? i need to know who this works

can i sell this mobile home that i have a leased option agreement on? my landlord said that he would take 8k for the purchase..is it legal for me to sell the home and give him 8k? if so, how do i make sure that he will not resend on the purchase price of the house when i sell to another owner?

I am living in a house that I went into under a lease with option to buy agreement.? I lost my job shortly after entering into this lease with option to buy. I put $2,500 up front and any amount over the rent $500 was to go toward the downpayment. The landlord will not make any repairs. I have paid for all of the repairs and upkeep of the house for almost two years. I have however been late with the rent several times. He has accepted it but continues to charge late fees on a ongoing basis and each month says that he is going to put me out. I have invested all the money that I had into this house and he wants me to move out and he keeps all of the money. I don't think this is right since I have made all repairs and upkeep to the house since I have been here. Is there anything that I can do legally?

How do I regain rights to a home I own that is under a lease option contract where the lessee is in default? I live in Utah. The Lessee has subleased or rented the property (which is ok). The lease agreement says that if the lessee doesn't make a payment, I need to send a notice of default (which I wrote up and faxed to the lessee). The lessee has 5 days to cure such default (which they haven't). Since they didn't, I now have the right to terminate all rights they have to the property. I don't necessarily want to evict the current tenant. I'm willing to write up a contract with them so they can stay. I need to know if faxing the declaration of default, that I wrote up is legal "written notice". I also need to know if there is anything else that I need to do legaly so I can bypass the lessee and go to the current tenant and sign a contract with them and just have them start paying me.

i live in Florida and have a verbal agreement lease with option. They owners live in Canada and have decided ? sell the house to a family member. I have paid my rent three months in adavnce. How long before they make me move and how hard will it be for them since they actually live in another country? I have done many repairs and work on the house under the belief of purchase. Will this take a long time in court? I also have qualified for the realistate appraisel from the bank. I would like to be able to use that as an option to purchase since their claim is the need for a lump sum of money.

Can I get my money back from a lease option? I had signed into a lease option a year ago and a few months ago decided not to exercise the option. Now, I've been going back through the contract and no purchase agreement was ever signed or presented to me and no sale price was ever frozen. After signing the lease option, we were told that the sale price was the "appraised value" so we went and got the property appraised. When we presented the appraised value to the owners they said the appraised price was what they had paid for the property a year before we moved in. After we had already signed the agreement, we then had the home inspected and major termite damage was found and all the electrical was unsafe and needed to be re-done. When that was presented to the owner they said we were buying it "as-is". My question then is since no price was ever determined or listed or even agreed upon, is the lease option agreement still valid or can I get back my security deposit which was originally part of the down payment?

In a lease-option and discovered home has severe foundation damage the owner wont fix. Can I get deposit back? Entered lease-option agreement giving down payment of 3x the rent in August 2007. The home did not pass inspection until mid February 2008 due to owner not making necessary repairs and technically was un-inhabitable but I made on time monthly payments. In March I noticed a large crack in the basement wall that was painted over and water leaked into the basement with each rain. I immediately notified the owner via email and he promised to have a professional waterproofing company come to make repairs yet he never called back. After a week of heavy rains in May, the entire basement flooded. I notified the owner again he sent a carpenter out to home to install a sump pump. The carpenter dug a hole in the basement 3x times the size needeed to install the sump pump, left and never came back to finish the repairs. For almost a month now, the hole has been in the basement and the owner wont fix correctly. Estimated repair costs $5000+. I don't want to purchase home can I get deposit back?

Will I be able to buy a house through a bank with a lease option contract with a foreclosure on my credit? I am in need of advice. I have a foreclosure on record because of a bad decision and investment. I want to know if I should get into a lease option agreement versus a renting situation. With a lease option I can purchase a home running the mortgage like a refinance and a portion of the money gets applied to the purchase price. If I rent it is less risk but the all the money goes to the landlord. My question is: Will I get approved for a mortgage running the loan through a lease option agreement to avoid the foreclosure stain on my credit or is it the same as a normal purchase with the same 4 to 7 year penalties till you can purchase again? I just hate throwing my money away in renting situations but I want to make the right decision for the future and looked toward the lease option.

Realtors - Lease Option Agreements? What's your standard requirement for a down payment on a lease option? Do you collect commission up front on top of Owner's requested deposit, or wait until the end of lease period, and why? With my office we actually use the term "fee" instead of downpayment or deposit, to avoid the possibility of having to refund/pay it back to the potential buyer & tying things up in a court of law. It seems that alot of sellers, more so in the bay area do ask for 5-6% of the asking. We as Realtors can only suggest, but as you both have stated, it is the buyer's decision as to how much. Appreciate all your input :)

what are the options for breaking a lease agreement? The lease is for a year and I have only lived here for two months.

When in a purchase agreement who get the tax write off? I'm doing a lease option purchase agreement with a friend. Who gets the tax right off on the home. Being that most of my rent is going to the purchase of the home?

Lease/option a good way to go for me? I will be a full time medical student moving to the West (AZ) starting in August. I have excellent credit (737) and a good amount of savings. I can't qulaify for financing the conventional way because although I am working and have been doing so for 6.5 yrs. in the same field at the same place, I will not have verifiable employment upon arrival to AZ. Many lenders ask how I am going to pay my mortgage and I simply answer.. the same way I would pay my rent. Seeing especially now it would be around the same amount. I would REALLY like to take advantage of this buyer's market. I am not looking to buy something extroadinarily expensive ($100-150s). Really want a 3bed/2.5-3 bath condo or house!!!I have come across "lease/option" ... would this be a good way to go? What are some alternative financing approaches that could be taken in a "lease-option" agreement? Does streamline refinancing work? Please share your knowledge/advice!! Thank you so much in advance!

homes for sale -lease/buy option? Are there any reliable websites available? What are the general terms of agreement with this option? How long does the rent/lease agreement last?

How would I determine the lease and purchase amounts of a three year lease/purchase agreement? The current asking price for a parcel of land is $200,000 and the seller prefers a three year lease arrangemant with the option to sell at the end of the term. What should be the amount of the lease and how much of the lease should be applied to the final purchase price?

wat is the max.percentage increase allowed on a 1 or 2 yrs lease agreement for a rent control apartment in ny? wat are my options if the lease was signed but supersedes the percentage increase allowed on a rent controlled apartment?

Worried about the status of a lease purchase option.? I entered into a lease purchase option in June. The property is still under construction & available Nov. 1. The seller is having trouble with the terms of his mortgage & wants me to get a mortgage now. I can't due to credit issues. At first he offered a refund of my sizeable deposit, but now he says that the terms of his mortgage might not change, but Nov. is fast approaching and he won't know for 2 weeks if he can close on the property. He also stated that my monthly payments might have to be higher than on the contract. I cannot pay more. I need my deposit to look for another place. The original agreement is in writing & states the lease/purchase commences on November 1. Do I have any legal recourse to get a refund of my deposit (the contract states it is non-refundable), since the seller does not currently own the property, there are no other witnesses on the contract and I don't think his lender knows of his intention to lease option the property?

Lease agreement question? What are my rights as Lessor? I have leased my home to a women. We have a lease with option to purchase contract..I need to know if someone can explain this part..Lessee agrees to pay the Lessors a Down payment of $10000 in certified funds only. $5000 of which will be put on the principle of note or towards closing costs at the end of 12 months lease, this $5000 will be refundable in the event that this agreement to purchase home is not executed at the end of the 12 month lease. The other $5000 is paid to Lessors for the risk of leasing home and will not be refundable at any time. This contract commenced on June 25,2009. She cannot get a loan to purchase home and is not willing to sign another contract on my terms. The money that was refundable is in question. I need to know what exactly does the part about $5000 will be refundable IN THE EVENT THAT THIS AGREEMENT TO PURCHASE HOME IS NOT EXECUTED AT THE END OF 12 MONTHS mean? Is she eligible to get this money back or did she default?

Required Disclosures of California Real Estate Broker in leasing own home? Does a California licensed Real Estate Broker have to disclose that he is such in a lease/option agreement for the lease of his own house to another person? If so. What is the reference to California law that requires such a disclosure?

Regarding my lease option contract with landlord/buyer? A realtor told me that the landlord/seller is in violation by selling the house to me as a lease option while still holding a mortgage on the property. I also found out that the county assessor considers this property owner occupied - meaning by him - when I am the one actually living there. Is our agreement legal or is he in violation? If this causes him to "toss me out" as you said, then I'd better be getting my option money back. I'm not the one violating anything.

Is it legal for a realtor to "hand write" important information on a lease to purchase agreement? I'm interested in a condo and I want to choose the "lease with option to buy" and I am concerned about whether it will be a trick and at the end of my lease, I will be obligated to buy the home. I asked the realtor to show me the document and she showed me a lease agreement where she writes in "black ink"....'The leasee is not obligated to purchase this condo." and then she signs it. My question is....Is that legal??? Is that a red flag? If it is okay...should I ask for her to get her signature notarized? Help!!! Thanks.

cancelling 3 year lease agreement 13 mths into contract? i am looking to return a vehicle (pick -up) i had taken out a 3 yr lease on,with the option to buy. i have had the truck 13 mths. i am considering giving the truck back to the lease company. what will i expect back from them?

What forms are needed to rent out a house? I'm new to real estate and just wondering what are all of the forms required to rent out a house or a lease/option. Lease agreement, as well as purchase agreement... what else?

I have a lease agreement to in which I prepaid, but now the old landlord got foreclosed on and we have a new? landlord who will not honor the lease. Told me that i needed to get the money back from the old LL and give it to him. What are my options.

how do i find out the termination process(fair housing law) of a lease agreement, with an apartment? part II? 1st question: we have an opportunity to lease purchase a home from my father in law, but the apartments say there is an termination fee process, we can not afford to pay it in full, and if we dont with in 30 days of moving out it will automatically go into collections, this will affect our credit next year when we go to purchase the house from him, what kind of options are available to me. Additional Details Feb 13, 2006 at 6:57 pm in the lease which is 6 pages nowhere does it state anything about termination fees, although there were 3 additional pages(addendums)and one of them is a early termination of lease contract, which isnt signed or initialed by my wife nor myself.

Lease to Purchase Home? I have someone wanting to Lease to Own a house I have for sale. Do I need to have a "Lease Agreement" and a separate "Lease to Purchase Option Agreement" or is just a "lease to purchase option agreement" sufficient?

should Iease a horse and so lessons on it? I've seen some lease options that include some private lessons within the lease agreement, I would like to see how owning a horse financially would go, I've worked with horses already, but I have never trained them, or owned one just cleaned, can cared for them.

If you are unable to qualify for a mortgage is lease with option to purchase a good idea? Please provide the pros and cons. Do's and don'ts. What to watch out for and ask for in the terms of the agreement.

when leasing a condo do you have to sign a purchase agreement as well? This property is a lease with an option to buy. The realtor is telling me to sign a lease and a purchase agreement that states all the agreements that me and the owner agree to if I decide to buy. The addendum states that I am not obligated to buy and it also says that 30% of rent will go towards buying the condo if I decide to purchase. So, should I sign this purchase agreement?

What are my options with this lease agreement? Our current lease is not up until October. However, the landlord is moving to Mexico and wanted us to sign a new lease early. We told her that with gas prices and everything, we don't know how long we will be able to continue living out there (in the country) and didn't want to sign another full year lease at this point. We didn't mind doing 6 months, but not a full year. She said we had to sign the full year or they would raise the rent. But that we could re-evaluate the lease in 9 months. Feeling trapped, we signed it. We went out of town for the weekend and she left our copy of the lease inside the house. She added to it AFTER we signed it. It says that we will "Re-evaluate after 9 months. 2 months notice to terminate." The part about two monts was added AFTER we signed it. Also, she dated the new lease for the day we signed it, but it doesn't go into effect until Oct. Is it still valid? I don't like the tactics she's using. Am I stuck? Since our current lease is still in effect, can she make us sign a new one early and it still be valid? If so, do we have a certain time frame to change our minds? Ok..since she added "2 months notice to terminate" can I take that to mean that as long as I give her two months notice I can terminate at any time? I know that's not how she meant it cause they want to lock us in for as long as possible, but there is no explanation. It's just a handwritten addition. So can I interpret it the way I want?

i am in a lease to own option. The owners are asking me to pay for the real estate taxes.is that legal? I was given 10% beneficial interest. i signed an agreement stating i would be responsible for taxes but not until actual closing when i opt to buy the property, i am still leasing property. Can they charge me for the real estate taxes?

how do i find out the termination process(fair housing law) of a lease agreement, with an apartment? we have an opportunity to lease purchase a home from my father in law, but the apartments say there is an termination fee process, we can not afford to pay it in full, and if we dont with in 30 days of moving out it will automatically go into collections, this will affect our credit next year when we go to purchase the house from him, what kind of options are available to me. in the lease which is 6 pages nowhere does it state anything about termination fees, although there were 3 additional pages(addendums)and one of them is a early termination of lease contract, which isnt signed or initialed by my wife nor myself.

Are "lease with an option to buy" traps? want to rent a condo... and the owners are offering lease with an option to buy. is that a way to get me trapped or are these type of agreements legit?

auto lease agreement experience.? has anyone had a great lease contract and great expirience at the auto delearship. how did you do it. what would you have done different if you could go back and do it again. what tips can you offer someone in the market for a lease of a 2007 toyota tundra sr5. v8. short bed with about 700 worth of aditional options. thanks for your help.

what are remedies if individual backs out on agreement to lease their condo to me? I signed a lease and paid a deposit to take possession of an individuals condo on August 15. He called me today to say he has to cancel the lease. The lease is signed and my deposit check has been cashed. I feel he owes me more than just my deposit back as this is a huge inconvience. What are my options?

My landlord refuses to add a new roommate on to an existing lease, what are my legal options? A new roommate joins after I made a lease agreement with a landlord. I requested the landlord to add the new roommate onto the lease but she refuses. Do I have any legal options?

how do i word a letter that i am signing a commerical lease agreement under duress? My legal council reviewed the agreement and made changes - the Leesor did not agree to changes and said "i make the rules, it is my space, take it or leave it". We started out as parnters and now have split due to his business practices and personality. My equipment is in leased space (over $80K to move - which i don't have) and i have no option if i want to continue to operate the business. I just want to say i signed the agreement because i had no other reasonable or feasible choices, it will be notorized. How do i say this, and do i have to provide him with a copy?

I am in a lease agreement with 2 other guys but i moved away, that school was not for me is there a loopholes? i need to get out of this 9 month lease because i do not live there and i dont want to have to pay for it for another 6 months i have tried to find somebody to take it over but no luck so far i was just wondering if there were other options?

How do I set up a "lease to own agreement" on my home? I am allowing some friends with less than perfect credit "lease to own" my home. However, I still have the mortgage in my name. Today my friend informed me that he would gain nothing from renting my home because we lender wouldn't allow it. All we want to do is put his name on my mortgage so he is able to improve his credit score by making payments on time every month. Do we have to re-finance in order to add his name to the mortgage? Are there any other available options open to us?

lease of premises agreement question? i run a store in los angeles and my first initial lease term expires in end of year the 2007. i have 2 year option on lease contract. but landlord wouldn't give answers to tenants, he has been saying wait since 3 or 4 month now. there are about 5 tenants total in the building. can a landlord kick out tenants without any written notice? is there any protection law for tenants?

Lease agreement grace period? 7 days ago, myself and three other people have signed a one year contract to lease an townhouse. On today, the seventh day after signing the agreement, which is nine days before we take ownership, We have found out two of the people who are on the lease cannot make the payments for emergency reasons. Do we have a grace period in which we can void the contract, and no pay a penalty AND get our damage deposit back, which we paid when we signed the lease. Please do not be vague on our options.

how exactly is a lease purchase diff from regular purchase of a new home? besides the fact, that at the end of lease purch agreement one has to the option of moving out, what else is the difference?

Can a NY lease purchase tenant be evicted before purchase for non-payment? Obviously the purpose of a lease to purchase agreement is to sell so you would charge late fees first and what not,but what happens if the tenant/buyer is 30 days or more delinquent? Can you evict or must it be a foreclosure if there is a lease with an option to purchase? Tim: This is unrelated to my question. I am the seller trying to find out if I would get taken advantage if I do a lease to own and the people stop paying. I am not in any danger of foreclosure-not even close but thanks!

Lease option Question? I am in a lease option to purchase a residential property and unfortunately the gentleman whom has entered into this agreement has passed away. What happens there is no will is my agreement still valid? I am in Washington state...

Options to get out of a lease agreement? I need to confront my landlord about getting out of my lease because of my neighbors, along with several other problems but my next door neighbors are the worst problem. Their door is right next to mine and they ALWAYS sit outside the door smoking weed. So much so that it stinks up the entry of my apartment. I have complained several times to the apartments but they say that they cannot do anything about it and it continues. I have a 5 year old little girl and I do not want her smelling this every time we leave or walk into our kitchen. My lease has an owners obligation section, one of which includes that they will act to protect the public health and safety of their tenants, but I am not sure that this qualifies. Either way, I do not know what to do. I have been unable to catch my neighbors doing this "red handed" because they keep a nasty ashtray outside my door that is full of cigarettes, and always run inside their door as soon as they hear my door open, but I'm not an idiot and I know what weed smells like. One morning I was leaving to take my daughter to school and the cloud outside my door was so heavy, I could still smell it when I got into my car and dropped my daughter off. I do NOT want her going to school smelling like that. Does anyone have any ideas or suggestions to help me get out of my lease?

As an ignorant landlord, can I get out of a lease option I was tricked into signing by a savvy realtor/leasee? I want to sell my property, so at the signing of the lease, my new tenant suggested I add the following statement to a standard lease to make it a "lease option": "Lease with option to buy at current market price of $550,000 less rent collected at termination of lease." He said this was the usual way such things are done and it had to be done that moment as part of the lease. I have since done my homework and found out different. How do I get out of this agreement?

Lease to option to purchase? When considering a potential lease to own agreement (probably for two years) until this buyer can qualify for a loan to purchase, who pays the utilities? i.e.--does the potential buyer only pay what the present mortgage is from the seller-or does the seller estimate what the utilities are and include in the rent-----or should the agreement indicate the potential buyer needs to put the utitilies in "their" name? Want all the bases covered in this potential route to take since my son has TWO mortgages-one in Atlanta and his home here. Thank you for any feedback. Follow-up-Teran-Rea- The home here was to close one week b/4 his home in Atlanta. The house fell through 1/2 hour b/4 closing here. They had already left their apartment in Atlanta and had to pay 4 months to get out of it and $12,000 invested in the new home------they HAD to go through with it there. Bottom line- a nightmare. The real estate agent here would handle all the paperwork if my son should decide to go this route---( I have NOT mentioned it to him yet). They "buyer" wants to purchase it in 18 months or less. Family is an acquaintance of mine. I basically hope my son can hold off a little longer- it is difficult to say the least.

lease agreement? I leased a car when I was married ( it is in my name) x wife has agreed to continue to pay on the lease (it is in the divorce agreement) if she does not pay can is there any action I can take,paying for the car myself is not an option.

A potential renter is interested in a rent to own lease of a rental property I own ? Typically what percentage or amount of the lease to own option is used as building down payment monies. Any resources for what to include in one of these lease to own agreements ?

Rent/Lease option money? We are selling our home and are considering rent/lease with an option to buy. We're trying to get as much info as we can on the subject. We're a little confused about the option money and would like clarification, please. Is the option money in this type of situation ours to keep regardless of how the deal goes and is used as a credit for the buyers only when the closing occurs? Does it have to be held in an escrow account during the terms of the agreement? Is there usually a designated time period when we would have to return the option money if the buyer is truly unsatisfied with the property? Say after 3 weeks or 30 days or would that matter? Thanks for your help!

can a landlord break a lease before the lease term begins? My story: i found a great condo for rent. i filled the application and lease agreement and had an appointment for today to give the landlord the security deposit and for her to sign the lease. but last night she sent me an email saying that her husband leased it to somebody else. the lease term doesn't begin until april 1st. now the landlord wants to give it to me but is scared of facing legal consequences for backing out of the other lease. what are her options as far as getting out of the other lease? i live in california

Lease To Purchase Option on a home I own that still has a mortgage? I am in the process of buying another home and I am thinking about renting out my current house with the option to buy to my current roommate. I will still have a mortgage on my old house in addition to the new house mortgage. I have seen that with the lease to purchase agreements there is an agreed upon percentage of the rent payment that is applied to the purchase of the home. At first I thought about charging $1300 a month and applying $1000 a month toward purchasing the home. But since it is still on a mortgage most of the rent payment will not go toward the principal. What percentage should I change it to? My mortage on my current house is $1000. Thanks.

my husband and I are thinking about leasing w/ option to buy a home what is a contract buyers escrow? I have downloaded forms for lease with option to buy, but I was advised that we should do a contract buyer's escrow. What exactly is this and how do I incorporate it into the agreement?

Am I off the hook for the lease agreement? Landlord emailed okay...? I was recently in a car accident and have been speaking with a counselor about my fears of driving, anxiety, etc. Myself and my counselor think that the best option right now would be to move back to campus for my senior year rather than stay in the house. One of my roommates was the driver in the accident and we have had a few conflicts regarding the situation and insurance issues. I contacted the landlord via email and asked about how to deal with the matter and he replied with the following... "As for breaking the lease, it is no problem with me. I will take your name off the lease, but you need to talk to (ROOMMATE'S NAME) about getting your deposit money returned, if he will even do that for you." I know that a verbal statement is not valid for lease agreements but would this email actually release me from the lease? I don't want to get screwed over in the end and I just wanted to make sure I can get out and move on with my life... Thanks in advance! I found this website: http://www.detroitchamber.com/detroiter/articles.asp?cid=7&detcid=125 I think this would apply? He signed at the bottom, "Thanks, (NAME)"

How do I account for receipt of a lease option payment in a real estate transaction? I purchased a property for a buyer who has bad credit and was unable to obtain a loan. I am leasing the property to this individual and have an agreement to sell the property to him in five years. I received $60k from this tenant buyer as an option payment. I don't believe this should be considered income on my taxes since it will be applied toward the purchase price in five years. This is essentially a large security deposit and I am acting as the lender. Any thoughts from accountants would be appreciated.