How does a Rent w/ an option to buy work? Is it worth doing?
2007-10-04 15:50:14 · 3 answers · asked by Rico 1 in Business & Finance ➔ Renting & Real Estate
you sign a contract to rent just like usual with an added "option"( simply an opportunity to buy )- but at the end of the rental period or maybe sometime during or at teh end of the lease you are given the right to go secure a mortgage and buy the property fro a set price before anyone else may. In some instances the landlord may credit a pootion of your monthly rent paid during the lease term back to you as a part of your down payment towards your purchase. If you decide not to excerise your option then they are free to continue to lease to you or they are free to sell to someonelse.
does that help?
Lease option usually run about 10% more and have specific things you must do to keep the option-than a straight lease.
2007-10-04 15:56:58 · answer #1 · answered by allamericanred2 3 · 1⤊ 0⤋
Rent with buy option is an option where you are not required to purchase the home but have the option .
If you are not yet sure about the property , it may be good to live in it a year before taking the plunge .
If you decide the place is a keeper , usually part of your previous rent is credited to the purchase price .
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2007-10-04 15:54:58 · answer #2 · answered by kate 7 · 0⤊ 0⤋
Rico,
from a landlord viewpoint they are great.
in the last 20 we had only one completed the terms. the rest left.
from a 'buyer/renter' view point u will not win.
2007-10-04 15:55:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋