The process of lease to own or rent to own a home is complex, learn how does Rent to own work, before you get into contract.
There are advantages and disadvantages for both the seller and the buyer of rent to own homes. Rent to own homes offer a convenient way for buyers, who do not have sufficient money to make down payment for buying the house straight away. They get sufficient time to mobilize funds for buying the house may be inn one, two or three years. They have an advantage to pay part of the down payment along with the rent. I mean they need to higher monthly rents. About 5 to 25% of the rent goes towards the down payment.Rent to own homes option allows the buyers to fix the current price to buy the house at a later date. It is highly advantage for rent own homes buyers if the property is located in flourishing locality and the real estate prices are booming at a fast pace.If the rent to own homes buyers defaults in making monthly payments for any reason, they are at a risk of right to buy the home at a predetermined price as agreed in the signed accord. The renting to own a home seller has the advantage of denying selling the home if the property prices are going up.The rent own homes buyers should make sure that the accord is written in such a way that they do not lose the right to buy home at a later date in the specified time. Otherwise, the rent to own homes sellers may tell you to vacate the house. Therefore, the buyers are advised to ensure that the agreement is perfect and nothing is hidden. Otherwise, the buyers will be at the risk of losing the premium paid towards the down payment for buying the house. The rent to own homes accord is to be signed by both the parties and registered at a local registration authority to make it binding legally. If for any reason, the buyer is unable to mobilize the necessary funds for buying the house within the specified period, he/she would lose the entire amount paid for buying the house.Main advantage for the renting to own a home seller is that he gets regular income as part of the rent. He gains interest on the amount received every month. He need not search for another buyer to sell the home. It is safe in the hands of a tenant till the final sale. He has the option to ask the rent to own homes buyer if he failed to make the down payment in the specified period.The disadvantage is that the renting to own a home seller is bound to sell the property at the predetermined price even if the property prices increased considerably since signing of the accord. He has no option to sell the house at a much higher price to potential buyers.Rent to own homes are advantages to buyers if they are making regular payments and the property prices are booming in that location.