Everything About Rent To Own Homes You Must Know
Rent to own house can be an excellent choice most especially for those who found their dream home and place but unfortunately, don’t have the money to pay for it. 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. Now most of the time, rent to own contract is created when the sellers are in dire need of moving out and their house isn’t selling quick.
Both the homebuyer and the seller should have their contract reviewed by a legal professional as there are several issues that should be addressed. When talking about the lease agreement, see to it that the terms have duration of lease period, rent amount, rent credit for the down payment and to how it is held until time of purchase, both parties have to agree to write what would happen to the credit if ever the renter has chosen to buy 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. Needless to say, if you have dibs on the house and wanted to buy it, you will probably go for rent to own contract even if this will cost you more.
Take time to read and understand that as soon as the title is transferred to your name, it will be you who’s accountable for whatever that is going to happen to it. 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.