Legal Question in Real Estate Law in Arizona

I am buying a house for $65,000 cash in order for my son to occupy so that in time it will be his home. He is planning on paying me $700 a month for rent. His credit is bad and he is losing his existing house in Phoenix to foreclosure.

What is the best way to handle this legally ? I had hoped to avoid having some sort of written agreement but someone told me that a Lease Purchase might be a good plan ?


Asked on 5/16/10, 1:59 pm

1 Answer from Attorneys
Donald Scher Donald T. Scher & Associates, P.C.

A lease with an option to purchase would be a good way to go, if it truly reflects your agreement and suits your goals. You should be careful to protect your investment, and should not convey any title or ownership to your son until he is able to pay you in full for the home. In addition, if you were to suffer financial losses or the economy gets worse, you may want to sell the house and get the use of the money you invested to buy the house, before your son could get financing to purchase the home. A written agreement serves to protect you, as well as your son, and should set forth all of the details of your agreement and exactly what he is liable for and must pay, and what maintenance he must do, and what he may or may not do to the property, until he buys it.

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Answered on 5/21/10, 2:22 pm


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