is especially popular to people in the UK and has created hundreds of thousands of millionaires over the last 30+ years in the UK alone. Real estate In real estate transactions, a lease purchase contract combines elements of a traditional rental agreement with an exclusive right of first refusal option for later purchase on the home. The lease purchase agreement expounds upon what responsibilities the tenant/buyer and landlord/seller undertake during the course of the lease. This contract should describe any option fee and how much of the monthly payment will be credited to the down-payment for the purchase of the home at the end of the lease. At the end of the lease-term, the tenant/buyer has the option to purchase the house. The lump sum accrued from the initial deposit and the rent credit are only released to the buyer as down-payment on the house should the tenant/buyer decide to proceed with the purchase. The tenant/buyer is responsible for securing the necessary mortgage loan to finalize the purchase of the home. Should the tenant/buyer be unable to purchase the house due to a lack of financing, the tenant and landlord can agree to extend the option period, convert the lease purchase contract into a traditional rental agreement, or end the contract with the tenant moving out and the landlord seeking other renters or buyers. Benefits Lease-purchase contract agreements may meet the needs of a buyer and seller in a manner that cannot be accomplished through a traditional credit transaction. For example, lease-purchase contracts are popular with buyers who have poor credit scores, lower savings for down payments, or people who cannot qualify for a traditional loan at the time they need to acquire property. Controversy In the United States, when credits are applied to a purchase price the agreement becomes a financing contract and these contracts have been identified as predatory lending arrangements under the Dodd-Frank Act. Under this federal law any financing arrangement requires the purchaser of an owner occupied dwelling (one to four living units) is to qualify for any financing contract with a registered Mortgage Loan Originator. There are exemptions under this federal law for homeowners financing their primary residence, those in the business of real estate such as landlords are considered dealers. In all states, rent to own arrangements are no longer compliant with federal financing requirements. Some vendors in rent-to-own transactions target vulnerable families for