The Benefits of Real Estate Lease Option in Latin America.

THE BENEFITS OF REAL ESTATE LEASE OPTION IN LATIN AMERICA.

Financial institutions and real estate companies have been offering different ways to lend money to individuals which needs capital to buy a place to live for a period of time, these credit alternatives have not had a good reception during the last 3 years because of the downturn of Latin America economy which caused the reduction of capital from many people and companies. Additionally, financial institutions request multiples conditions like initial payments, good credit report, risk evaluation for each mortgage given, all of these requirements produce the despondency of people to request a credit from financing market and the spread of renting options without the mediation of the credit institutions. In order to increase the credit access, many governments from countries of Latin America Region have created real estate leasing options with different requirements and benefits to lessees and lessors (financial institutions or real estate companies), therefore it is very important to make an explanation of these new options provided to select the best alternative in terms of time, money and personal objectives. The purpose of this essay is to examine whether the different leasing options offered in mostly Latin America countries are a good choice for people who are not able to buy a place because of fixed conditions to entry to the mortgage credit. The information from government law and principal financial real estates markets in the Latin America will be use to support each claim.

A lease is a contractual agreement between a lessor and a lessee. This contract or agreement