Rent to Own Homes - Be Sure to Review the Paperwork Carefully

The arrangement in which property owners offerlawyer wherever possible, before signing onto the
prospective house buyers access to the so calleddotted line.
'rent to own' homes arrangement is proving to aThe main thing you should be on the lookout for
popular one, at a time when the real estate marketwhen going through the rent to own paperwork is
is going through a rough stretch.injurious clauses in the agreement. These tend to
The way the arrangement works is really quite simplecreep in the part of the rent to own home
to grasp. The prospective house buyer gets into anagreement that deals with what is to happen should
agreement with the house owner to rent the houseone party be unable to proceed with the rent to
for a given period time (hence effectively gettingown homes deal. Typical victims to the catches
into a lease), under prior agreement that at the endfound here are the prospective house tenants, who
of the lease period, when the when the house sellerin highly flawed rent to own homes agreements, can
puts it up for sale, it is they, the prospective buyersfind themselves losing the portion of their monthly
who have been renting the property, who will getrent that was being assigned as down payment for
the opportunity to purchase it. Typical lease periodsthe house - should they opt not to purchase the
for this arrangement are three years long, thoughproperty, after all. In the worst cases, this can mean
longer or shorter leases for rent to own homes area loss of what can turn out to be a huge sum of
not altogether unheard of.money. On the side of the seller, the thing to be
To make the preferential right to own the houseaware of in the rent to own homes paperwork is the
when the time for selling it comes have a basis indegree of preferential buying treatment the
natural law, the arrangement is usually tailored in suchpaperwork gives to the tenant; and ensure that it is
a way that the prospective house buyer, at thisnot injurious to you as the property owner - keeping
stage just a tenant, has a portion of what they payin mind that trends in the real estate sector change
as rent going to the house owner as ordinary rentalfrom time to time, and that by the time the lease
income, with another portion of it going to the houseends and the property comes up for sale, winds
owner as deposit for the house, so that when themight have changed.
time for the purchase of the house finally comes, theOf course, while going through the rent to own
prospective house owner does not have to make ahomes paperwork with a toothcomb, it is essential to
down payment on it. This way, there is commitmentkeep in mind that agreements of this type are
on both sides for the sell and purchase of thealways tilted in favor of one side (this is one of the
property when time for the sale comes.harsh realities of life we have to live with). What is
While the rent to own homes arrangement doesessential though, is for you to avoid getting into an
offer a number of advantages to both parties in it, itagreement that is so fundamentally flawed as to
does come with a number of potential pitfalls, andinjure your most basic of interests in the whole deal.
herein lies the need for you as either the houseSuch fundamentally flawed deals are best avoided,
buyer or house owner to review the paperworkwhatever their other attractions might be.
involved in the transaction carefully, with aid of your