What You Should Know About Rent-to-Own Transactions

Rent to own is a technique that allows buyers who cannot gather a large down-payment or secure a mortgage the opportunity to make payments on their home. This type of owner financing is also useful for sellers who want to get their home off the market but are unable to find an eligible buyer. It expands the number of potential buyers and often gives sellers the opportunity to receive the full asking price or higher monthly rent for their property. Operation of Lease to Own A lease to own (or rent to own) works in the following manner: The lease of a property is combined with an option to purchase within a specified number of years (usually around three years or less) at a named price; The renter sometimes pays a non-refundable “option fee” which is between one to five percent of the total price; The renter will pay the monthly rent plus a premium that is credited to the purchase price. Seller Benefits Lease to own benefits sellers because they are more likely to get…

Read more detail on Recent Family Law posts –

This entry was posted in Family Law and tagged , , , , . Bookmark the permalink.

Leave a Reply