Tuesday, August 3, 2010

Lease Option Credit Accounting

 When receiving a rent payment on an option and the payment includes "credits" for the buyer, do you need to keep that in a separate account?  No - any option fees are non-refundable if the buyer doesn't exercise and credited against the price of the home/down payment if they do exercise and buy the home.  It is in essence a "paper credit" to the buyer IF and WHEN they purchase the home.  



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