What You Must Know Before Getting Into A Rent To Own House Contract?
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. How you can therefore get into a rent to own contract; a question that a number of people are asking.
Terms for rent to own houses are going to vary depending on the seller but in general, the property owner and renter is going to sign a contract to which the renter agreed to rent the property for certain period of time which is often 1 to 3 years and during that period, the renters pay above market rent with excess rent is credited to the down payment as the contract ends.
Rent to own deal is offering a chance for prospective buyers to settle into a house that they like to buy while they are saving for the down payment, improving their credit score or waiting for negative factor onto their credit report similar to collection or foreclosure 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.
Both the homebuyer and the seller should have their contract reviewed by a legal professional as there are several issues that should be addressed. 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. It is fairly obvious that if the rent to own contract will cost you more, you will still go for it especially if the house has certain features that you want.
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.