I am wanting to sell my house, but new to this experience....
What are the advantages and disadvantages to this type of transaction? Also, can rent to own be a contractual agreement? And do you agree on a set price prior to the agreement? HOw does it work! :)
2007-01-27 12:21:13 · 6 answers · asked by **twin** 4 in Business & Finance ➔ Renting & Real Estate
This is very much a contractual agreement.
You and the buyer agree to many things. The future sales price, the monthly payments, how much of that monthly goes to the purchase price, the length of time of the lease period, who pays the taxes, the HOA fees, the maintenance? etc.
Everything should be in writing and recorded at the county recorders office for the protection of all concerned.
This is an excellent way for a seller to sell their home for a tad more than it would go to a conventional buyer. It is an excellent way for a buyer who can afford a home but doesn't qualify for a loan to buy now and then finance the home in a year or usually 2 yrs.
You want someone who can easily afford the monthly payments that you agree to. They will often pay a few thousand dollars in upfront earnest money to you just prior to the move in, but after all of the paperwork has been completed. That is deducted from the purchase price.
Best of luck,
2007-01-27 12:36:01 · answer #1 · answered by Anonymous · 2⤊ 0⤋
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2016-09-09 22:50:11 · answer #2 · answered by Marcela 3 · 0⤊ 0⤋
hunter said it best. I just want to add that you should keep it two seperate contracts:
1. A standard lease contract
2. A standard purchase option contract.
That way, if they stop paying rent, you can go through the normal eviction process. For example, in California, if any of the rent goes towards the purchase price of the home or if the option fee greater than two months rent, then the tenant is not considered a normal tenant. They are considered to have an interest greater than a tenant and you will need to go through an additional court to eventually evict them.
Regards
2007-01-27 13:45:14 · answer #3 · answered by Anonymous · 1⤊ 0⤋
a short sale is much for the supplier who ought to quite take on the tax ramifications (some creditors concern a 1099 for the shortfall, some do no longer) than damage their credit through having a foreclosure on their record. a short sale is much for the shopper see you later because the numbers make sense. the experts are that the domicile would properly be offered less than the present marketplace fee, perchance renovated and bought for a income. The cons must be that the shopper loses money because they did not do their homework or miscalculated the expenses in touch. some short sales are lengthy and persistent even as others are settled interior a week. each and every concern is diverse. advice...do what you're doing...ask questions...get an preparation...refer to realtors, investors, bankers, contractors, etc. good luck!
2016-10-16 04:54:55 · answer #4 · answered by ? 4 · 0⤊ 0⤋
I wouldn't write up any type of purchase agreement with a rental agreement. I tried it once the renters trashed there house and credit. It left me without the option of selling to another as quickly as I would have liked. So be careful, get a professional involved.
2007-01-27 12:30:46 · answer #5 · answered by Kay N 2 · 1⤊ 0⤋
If you're the seller, you'll need to construct seller-friendly terms, including a down payment (or an "option deposit"). I would post this question on:
http://www.creonline.com
There are a lot of real estate experts on that free forum there who will give you free top-notch advice. When you go on there, explain to them your situation, and emphasize that you're the seller and that it's your own house.
2007-01-27 12:25:44 · answer #6 · answered by Joe C 5 · 1⤊ 0⤋