FAQ’S

Frequently Asked Question

Have questions about Extended Escrow? We’ve compiled answers to the most common questions from buyers, sellers, and our partners.

What is Extended Escrow?

Extended Escrow is a lease option program that lets you rent a home with the right to buy it later. You pay an upfront option fee, agree to an Extended lease, and lock in a purchase price from day one. This gives you time to improve credit, save for a down payment, and get mortgage-ready.

Who is Extended Escrow for?

It’s ideal for renters who want to become homeowners but need more time—due to credit repair, income documentation, or saving for closing costs. If you have stable income and are motivated to buy, you’re likely a good fit.

Can I buy the home before the lease ends?

Yes. You can purchase the home at any time during the lease term, as long as both you and the seller agree.

What is the option fee, and is it refundable?

The option fee is a one-time upfront payment (1–3% of the home price) that secures your exclusive right to purchase. It’s non-refundable, but it’s typically applied toward your purchase if you buy the home.

Can I make changes to the home while renting?

Cosmetic upgrades like painting or landscaping are generally allowed. Structural changes or major renovations require written permission from the seller.

Can I move out before the lease ends?

Yes, but you’ll still be responsible for rent until the lease ends or until another qualified tenant is placed, depending on your agreement. Always review the early termination clause.

How does Extended Escrow compare to rent-to-own?

Unlike traditional rent-to-own programs that buy and rent you a home, Extended Escrow works with property owners who offer their homes on lease option terms. This gives you more flexibility, clearer terms, and direct control over the purchase process.

How does the lease option work?

You rent the home for up to 36 months, paying monthly rent and an initial option fee (1–3% of the home’s value). If you decide to buy, a portion of your rent may be credited toward your purchase. You can buy at any time during the lease, or walk away if you choose not to.

What if I’m not ready to buy at the end of the lease?

You might be able to extend your option period for another 12, 24, or 36 months by paying an additional option fee, but this is only possible if the seller agrees to it—it's not guaranteed. If you choose not to buy and no extension is granted, your option fee and any rent credits will be forfeited.

How is the purchase price set?

The purchase price is locked in at the beginning of the lease. This protects you from rising prices during the lease, but if market values drop, the agreed price still applies.

What are rent credits?

Rent credits are a portion of your monthly rent that may be applied to the purchase price at closing, as long as all payments are made on time and the home is purchased during the lease term.

What happens if the seller backs out?

Your lease-option agreement is a legal contract. If the seller violates the agreement, you may have grounds to terminate the lease or seek damages. The agreement should clearly outline protections for both parties.

Who handles repairs and maintenance?

You’ll typically handle day-to-day maintenance. The seller remains responsible for major repairs. We monitor the property to ensure it stays in good condition.

Where can I find homes available through Extended Escrow?

If you are not working with one of our partner agents, click here to schedule a free consultation.