A common question and issue from individuals looking at leasing to own a Palm Beach home is “are you required to purchase your home in a rent-to-own home contract?” at the end of the rental term. As an example …
… let’s say you discovered an excellent Palm Beach rent-to-own home and settled on an attractive rent to own arrangement (lease option) with the seller that appeared like this …
– $10k upfront
– $1,800/ mo.
– $200k purchase rate alternative at the end of the 24-month rental arrangement.
Under that example, you have the opportunity to acquire the home for $200k within 24 months (often you can buy the house BEFORE the rental arrangement ends with no issue).
So, Are You Required To Purchase Your house In A Rent To Own House Agreement?
At the end of your 24 months, you’re just not all set to purchase the house … however, you still like the home and desire to live there, just get in touch with the seller and see if they’re prepared to offer you an extension on the rent to own contract.
Many times, if you have been a great renter and reveal an authentic intent to purchase the house, the seller will deal with you (it remains in everyone’s benefit).
If the 24 months comes up and you’re just not ready to purchase, and you don’t wish to remain in the house … you can move out and not buy the the home, generally without any penalty.
What Happens To The cash You’ve Paid Your home Owner As much as This Point?
If you choose not to buy your house, the time you invested in the house is dealt with much like a leasing … considering that you didn’t exercise your choice to purchase the house.
That’s the essential difference between renting and rent-to-own.
It is vital that you enter any agreement with a clear head and a full understanding of what it rent to own and lease to own means.
The two essentials in the agreement …
The Rental Agreement:
First first part is a regular rental arrangement.
You pay a monthly lease on the home for a specified term.
The Option To Purchase:
This is a different agreement that provides you the option to purchase the house for an agreed price at a date in the future.
If you decide not to purchase the home, you’re simply choosing not to exercise your option to buy your home, and everyone strolls away.
Makes good sense?
It gives you as the rental occupant/ purchaser terrific flexibility in the agreement, if you want to buy the home, you can exercise your option get a new mortgage from your bank and purchase the house at the agreed price. No biggie!
That about does it for this short article : )
Truly it provides you as the rental renter/ buyer fantastic versatility in the agreement.
If You’re Looking for Palm Beach Rent To Own Houses…
… check out our Palm Beach rent to own house program on this website and see our available rent to own / lease option homes by clicking the link below.