Orange County Lease Option Properties
for the 2021 real estate market -
When I created this page 10 years ago around 2011, bank owned
(REO), short sale properties, and lease-option
properties were at least available, with most major cities
having these for sale on the MLS. Today, in the 2021 Real
Estate market, when I checked the MLS on 11/28/2021, there
were only 4 (active) properties that are Bank Owned (with 3 of
those in Laguna Woods), only 3 homes listed as a Short Sale,
and 2 homes listed offering a lease-option. The high home
prices, low inventory, and high buyer demand of today's market
means that even homeowners in distress can easily sell their
homes conventionally for more than they owe. Keep that in mind
as you read this web page and realize that the information
below for standard, bank owned, short sales, and lease-option
types, were much more meaningful about 10 years ago than they
lease-options, I no longer recommend this type of transaction
at all. Here is why: The
trouble with lease-options
lease-option (also know as a lease to own, rent to purchase,
lease to buy home, or rent to buy) is a conventional lease and
a home purchase, bridged by a lease-option contract. This page
was designed to help you quickly locate homes in Orange
County, CA that have a lease-option available. Use the search
links below to find lease option properties in Aliso Viejo,
Newport Beach, Newport Coast, Laguna Beach, Corona Del Mar,
Coto de Caza, Dove Canyon, San Clemente, San Juan Capistrano,
Lake Forest, Portola Hills, Foothill Ranch, Wagon Wheel
Canyon, Ladera Ranch, Fullerton, Yorba Linda, Irvine, Tustin,
North Tustin, Rancho Santa Margarita, Mission Viejo,
Dana Point, Laguna Niguel, Laguna Hills, Silverado Canyon,
Modjeska Canyon, Robinson Ranch, or Las Flores, CA.
County lease-option home listings
||As you browse the South Orange County, CA
lease-option listings, you will see homes that have a lease price and others that have a sales price. The same home may even be listed twice (once
for lease and once for sale). If the listing contains
a lease price, it indicates the
approximate cost that the home would rent for on a
monthly basis during the lease phase of
the lease-option contract. If the listing contains a sales
price, it indicates the approximate price that
the homeowner is seeking to sell the home. You will
probably negotiate a similar price for the purchase
phase of the lease-option contract.
option home search by city or search all OC homes below
The links on this page are no longer working, as the field for
"lease option" in the MLS,is no longer
allowed to be used on third party feeds to web sites. If you
are interested in receiving a list of homes that are offering
a lease-option, send me an e-mail here and I will send you a
list from the MLS.
||Laguna Hills & Laguna Niguel
Forest, Portola Hills, Foothill Ranch
||Newport Beach & Newport
|Coto de Caza
& Orange Park Acres
||Rancho Santa Margarita
||San Juan Capistrano
& Modjeska Canyons
||Wagon Wheel Canyon
Looking in a different area? Call me!
Basics of a
The buyer pays the seller option
money called "Option Consideration" for the
right to later purchase the property. The lease option
money may be substantial.
The buyer and seller may agree to a
purchase price now or the buyer may agree to pay market
value at the time the option is exercised. It is
negotiable. However, most buyers want to lock in the
future purchase price upon inception of the lease option.
During the term of the lease option,
the buyer agrees to lease the property from the seller for
a predetermined rental amount.
The term of the lease option
agreement is negotiable, but the common length is
generally from one year to three years.
The option consideration money
generally applies toward the toward the purchase of the
A small portion of the monthly
rental payment also applies toward the purchase price.
Option money is rarely refundable.
Nobody else can buy the property
during the lease option period.
The buyer generally cannot assign
the lease option without seller approval.
If the buyer does not exercise the
lease option and purchase the property at the end of the
lease option, the option expires.
The buyer is not obligated to buy
the property at the end of the lease term.
lease-option is suitable for someone who:
a property they are selling and will have equity for a
consulted with a lender and is confident that they can
qualify for financing at the end of the lease term
a sufficient amount of cash for the option deposit which
is typically 1 to 5% of the purchase price, and
understands they may lose it if they do not exercise the
lease-option is unsuitable for someone who:
home owner will finance the purchase - This is almost
never the case
lease term can be for three years or more - Typically,
the term is 12 to 18 months, maximum
all of the rent applies to the purchase - Almost
never. Typically only a few hundred dollars per month is
offered, and this is usually only if the rent is increased
to cover it!
it is a great for people with bad credit - It is
not a home buying "short cut" for people with
poor credit. If you have credit issues, you must be sure
that you can qualify for financing before the lease term
ends, else, you may lose your entire deposit! Consult with
a lender before entering into a lease-option
about lease options, here
If you are interested in an Orange County lease-option home, please call me. I will
be happy to assist you with a lease option, lease to own
houses, rent to buy property in Orange County, CA, as well as
a sale, purchase, lease, or rental. Your source for lease
option homes in Southern California.