Posted on: 07th Aug, 2009 11:26 am
Is rent to own the same as purchase agreement?
I do not think so
no it is not. if you enter into a rent to own agreement, you are agreeing with the landlord/eventual seller that a portion of your rental payment every month will be used towards the eventual purchase price of a home. that price will, undoubtedly, be set upfront so as to protect you and the owner from price fluctuations down the road (if you wish to call this "protection" that is).
you will then pay rent, and the agreed upon amount will reduce the costs when you finish the agreed-upon term (1, 2, 3 or more years) and actually move forward to purchase the home.
i know just enough about this to be dangerous, so i'm going to stop now and not say any more. i will add, though, that you'd be wise to have an attorney review any documents that pertain to such a transaction, so that you'll have full knowledge of what you're getting into.
you will then pay rent, and the agreed upon amount will reduce the costs when you finish the agreed-upon term (1, 2, 3 or more years) and actually move forward to purchase the home.
i know just enough about this to be dangerous, so i'm going to stop now and not say any more. i will add, though, that you'd be wise to have an attorney review any documents that pertain to such a transaction, so that you'll have full knowledge of what you're getting into.
i give up...jules, when you ask a question in a forum such as this, it should be a little bit specific to your particular situation, rather than so general as the one above. i see you've now posted a new question that demonstrates that you've already signed some sort of agreement with a landlord - on a mobile home, to boot.
if i could retract my answer to you above, i'd do so, but then again someone else might benefit from what i've written. you never know.
if i could retract my answer to you above, i'd do so, but then again someone else might benefit from what i've written. you never know.
No Rent-to-own agreement is giving option for purchase in future.
Rent-to-own is a real estate agreement which is a composition of a rental lease and a purchase agreement where the tenant has the option to purchase the property at a fixed price at a specified point of time in the future.
It is also known as lease to purchase option. The lease is like a typical rental lease where the lessor (land owner) allows the lessee (other party) to occupy the property in return for a monthly payment. The option to purchase the property usually states the price at which the property is to be bought and the time period during which the tenant is able to exercise the option.
The seller may attract the tenant by having a specified portion of the rent applied as a credit toward a down payment on the house, or may receive a bulk sum of money for the option giving the tenant time to rebuild their credit if necessary
Rent-to-own is a real estate agreement which is a composition of a rental lease and a purchase agreement where the tenant has the option to purchase the property at a fixed price at a specified point of time in the future.
It is also known as lease to purchase option. The lease is like a typical rental lease where the lessor (land owner) allows the lessee (other party) to occupy the property in return for a monthly payment. The option to purchase the property usually states the price at which the property is to be bought and the time period during which the tenant is able to exercise the option.
The seller may attract the tenant by having a specified portion of the rent applied as a credit toward a down payment on the house, or may receive a bulk sum of money for the option giving the tenant time to rebuild their credit if necessary