2007-06-27 06:57:20 · 3 answers · asked by GMH-520 1 in Business & Finance ➔ Renting & Real Estate
The most common complaint I have seen in these forums is that the 'seller' takes your lease/option payments and does not pay his monthly mortgage payment, which results in a foreclosure action. At that point you have nothing but an expensive rental.
I would advise a requirement in the contract that, if there IS a lienholder of any type on the property involved, you specify an arrangement where your payments are made payable to BOTH the 'seller' and whomever holds the lien. This will insure that the payments are made, since a dual party check is not to be cashed/deposited without the signatures of both parties.
As a side piece of advice, do not be afraid to occasionally visit your county's land office to check if any additional liens have appeared since you made your contract. The contract should also contain a proviso for specific action if any new liens DO appear.
2007-06-27 08:42:12 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
If the owner of the house already has a contract prepared, ask to take a copy to your own lawyer BEFORE signing it. Find a reputable real estate lawyer and have them review the contract. It is worth the consultation fee to ensure your behind is covered, and they can tell you if the contract is in the norm or seems unusual. The laws for lease purchase/ rent to own are different for each state, so my best advice is to take the contract to the lawyer.
2007-06-27 07:10:12 · answer #2 · answered by amysgetaways 3 · 0⤊ 0⤋
This article is very complete:
http://www.rentapartmentsusa.com
2007-06-27 07:39:21 · answer #3 · answered by Anonymous · 0⤊ 0⤋