Lease-to-Own

Lease – to – Buy, better known as “Rent to Own”, is gaining in popularity these days among both buyers and sellers of real estate. A Lease – to – Buy contract allows a renter to lease a property and at the end of the lease gives them the option to buy it. Typically, a nonrefundable option fee is paid when the contract is signed which may be applied to the purchase price when the option is exercised. And, a portion of the monthly rent may also be applied to the purchase price or towards the buyer’s down payment. In today’s tight lending environment a potential buyer with some credit issues may benefit from this type of arrangement while he takes steps to remedy his creditworthiness. A seller benefits by being able to get immediate cash flow on their property and a contract to sell at a later date.

There are other benefits for both buyers and sellers and, as with almost anything, several issues to watch out for. Never sign any contract without a review and consultation with your attorney.

Is Rent to Own a viable option for you? Give me a call and let’s find out!