Everything About Rent To Own Homes You Must Know
Rent to own house could be a very good option if you aren’t financially stable to buy a house but, you have found a place that pique your interest. A question that so many people are asking are how they can get into rent to own agreement.
As for the terms of rent to own house, the seller will set how the agreement goes but most likely, both the renter and property owner will be signing a contract that the renter will be renting the property for 1 to 3 years and on those period, the renter will be paying above the market rent with the excess rent be credited to down payment as contract ends.
Rent to own deal do offers the chance for prospective buyers settle in a house they want to buy while being able to save enough for down payment, improve their credit rating or even wait for negative reports on their credit history to be forgotten. Home sellers are typically offering a rent to own contract in the event that their house isn’t selling quick and they wanted to move out fast.
There are plenty of things that ought to be given attention to and for that, the seller and the homebuyer needs to consider contacting a real estate lawyer to check their contract. As for the terms of lease agreement, it has to include the length of lease period, amount of the rent, rent credit for the down payment and to how it is held until time of purchase, both parties must agree to write what would happen to the credit if ever the renter has opted out buying at the end of their contract, who’ll pay the property taxes, homeowner and insurance fees during lease period, who is going to pay for maintenance, repairs and utilities during lease period and the likes.
In regards to the renters, it is integral to weigh both your options for saving more and spend less by renting a house and be able to pay for the down payment or sign a rent to own house contract. Obviously, if you’ve fallen in love on the house and determined to buy it, you’ll go for the rent to own contract even if it cost you more.
You should not rush things when it comes to this transaction because remember, the moment that the transfer of title is completed, it is you who will be automatically in charge for whatever happens to the house; so better yet, read and understand everything in the contract. Prior to buying the property, it will be a good idea if you would hire a home inspector to check for possible repairs and renovations needed to be done in the house.