Everything About Rent To Own Homes You Must Know
For those who are not financially secured but have already found a place which suits their preferences, then rent to own house can be an excellent choice. A question that so many people are asking are how they can get into rent to own agreement.
The terms for rent to own houses will vary depending on the seller you’re talking but more often than not, the property owner and the renter will have to sign a contract wherein the renter is agreeing to rent the property for set period of time which is usually 12 to 36 months and throughout those time, the renter will be paying above the market rent with the excess going to the down payment as the contract ends.
Using rent to own, this gives prospective homebuyers a great chance of settling into a house that they wish to buy while saving for the down payment, wait for undesirable reports on their credit or to just simply improve their credit score. 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.
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.
For renters, you have to weigh in the options of your rent to own house contract compared to renting a less expensive home and be able to save money for the down payment. 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.
You have got to take enough time reading and understanding the contract because by the time the title is transferred to you, it is you who will be in charge for anything happens to it. It’s therefore a great idea to call a home inspector to do inspection of the property before buying it.