so i can get the heck out of that place!
2007-09-19 10:50:56 · 5 answers · asked by Tireless 2 in Business & Finance ➔ Renting & Real Estate
You can sign a lease purchase agreement. The agreement will state what the puchase price will be in the future and what portion of their rental payment will go towards the down payment. If they dont execute the purchase option then you keep the portion of the payment that was to be used towards the downpayment. I believe Office Max or Office Depot have standard Lease Purchase Agreements for sale.
2007-09-19 11:05:38 · answer #1 · answered by Lucky Chuck 3 · 0⤊ 0⤋
I believe that a rent to own contract is basically a rental contract with an option to buy. They do not have to exercise their option. Your goal should be to get enough rent (which is credited to the sale price) so that they do not want to lose their equity, but there are no guarantees that they will exercise the option. You may get the property back in a thrashed condition.. This also can happen in a land contract.
If we have a recession in the two or three years, what assurance do you have that you will get your money?
You will need an attorney to draw a contract form, but you should discuss with him the downside to these contracts before you have him do anything else.
2007-09-19 11:13:01 · answer #2 · answered by Bibs 7 · 0⤊ 0⤋
To go along with Lucky Chuck's answer...
Most people structure this as like a 5 year balloon for lack of a better example...you accept rental payments for 5 years with a portion going towards the downpayment of the home. At the end of 5 years they are required to purchase the property from you (usually this means them getting their own financing from a traditional lender). If they move out or change their minds, they are in breach of contract.
2007-09-19 11:19:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Don't know where you are, but here in Texas there are mandatory clauses that MUST be included and certain structures for amount of time to make up arrears etc. in place by law to protect both parties, and here in Texas it is called a Contract for Deed. Sure I know there are probably thousands of 'Rent to own" papers out there in Texas, thing is none of them are legal or valid if they do not follow state statutes.
2007-09-19 13:08:27 · answer #4 · answered by Title specialist 2 · 0⤊ 0⤋
You need a qualified and experienced Realtor to help you with this. Don't try it alone and DON'T listen to people who tell you to do this and that. Go get a qualified REALTOR! Do NOT use the forms from Office Max if you DON'T know what you're doing! You need guidance. Believe me, it will be cheaper in the long run.
2007-09-19 11:11:14 · answer #5 · answered by Anonymous · 0⤊ 1⤋