A to Z of Rent-to-Own Concept
Majority of people consider rent-to-own home programs as bizarre. These unusual thoughts arises wheneither they aren't aware of it or don't want to know more about it. In simple terms, rent-to-own is the rentingoption availing you the opportunity to purchase the rented home after a stipulated period of time. Accordingto the rent to own Toronto experts the whole contract is set up using two agreements – OccupancyAgreements and an Option-to-Purchase Agreement. Tenant is allowed to purchase the home at the predefinedprice but within a given time.
Terms Used For Rent-to-Own
There are many other terms used for rent-to-own such as rent-to-buy, lease-option or lease purchase. Allthese terms describe the same thing – renting with an option to purchase. There are certain rent-to-ownagreement options that makes it different from the other terms. In some cases rental agreements with optionto purchase are used, whether some go for agreement of purchase and sale. You are free to choose any optionbut you need to make sure the home is cost-effective now and in the future. In order to be on a positive side,always consult real estate lawyers about the deal and its consequences.
Why Consult A Lawyer?
Lawyers are generally avoided unless the matter is serious. But it is advisable to consult a lawyer wellfamiliar with rent-to-own term. They can help you in understanding and executing the deal as there arevarious scams in the industry. You can find gamut of properties offering rent-to-own services. But, it isadvisable to choose a licensed real estate broker for secure dealing. It is crucial to protect your interests to goa long way.
Working of Rent-to-Own
Tenant-buyer keep forward a small down payment amount. This payment is credited at the time of
purchase helping reduce some burden of the tenant.
The monthly payments or a part of those payments paid by the tenant are accumulated as the fundsthat are credited towards purchased funds.
The tenant-buyer can perform home renovation tasks during rent-to-own period.
The tenant-buyer can get finance from conventional lenders at the time the program ends.
The tenant-buyer officially becomes that owner after complete down-payment and the mortgage pre-defined.
Advantages of Rent-to-Own
Rent-to-own provides numerous benefits to both tenant and sellers. The tenant-buyer gets the followingbenefits:
1. Can avail lower down payments2. Equity building3. Less expensive closing costs4. Time for repairs or re-establish credit
Rent to own homes are easy to buy over a long period of time especially for people with bad credit score.This gives them the opportunity to avoid banks and buy their own home with an alternate arrangement.
Rentingtoown.ca avails the ultimate path to the people dreaming of their own homes. Rent tenants can rent ahome with an amazing option of purchasing it in due time. We offer reliable rent-to-own programs that aretransparent suiting your financial needs.
