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. 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 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. Normally, home sellers are offering rent to own contract in case that their house is not selling that fast and they are eager to move out.
Homebuyers and home sellers must have the contract checked by a real estate attorney since there are plenty of things that have to be given attention. 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. It’s therefore a great idea to call a home inspector to do inspection of the property before buying it.