Lease options can be a successful way to buy a home, but there are some caveats. Here are some tips for your protection:

1. You do not own the property yet, and while it's tempting, should not make improvements to the home until you close.

2. If the transaction requires option money it is suggested that the funds be held by a third party with a clear understanding of the circumstances for a return of the money.

3. Confirm that the seller does have the right to sell the property and can sign documents with you as both landlord and seller.

4. Clarify the owner will maintain the property and won’t take actions that will disturb your living in the home.

5. Before signing a lease purchase, confirm the owner has adequate current homeowners insurance and is current on the mortgage payment, HOA dues and property taxes. You don't want to find out when you are further along in the process that any of these payments are in arrears.

6. While you are a tenant, this transaction should also be treated as a purchase. Have the seller fill out a Seller's Property Disclosure and then have a thorough home inspection to assure there are no major issues that need to be addressed or negotiated. You must be absolutely clear what you are agreeing to buy and in what condition.

7. Clarify the responsibility for title insurance and have that process started. Order and then review the title policy with legal counsel if needed. This is a vital step to protect your investment as you would with a straight forward purchase. If you wait until you are exercising the lease option for this title review and there is something revealed that is unacceptable, that would be time wasted on a home you are not going to buy.

8. Work closely with your Realtor and legal adviser when you are drafting the documents to avoid any surprises later on. Your Realtor can confirm the value of the property before you sign an agreement.