As a result of current financial struggles, many individuals have turned to lease to own homes as a means to have the American dream of owning their own home. Rent to own trades, or rent option transactions since they’re frequently called, have continued to rise every year for the past several decades. Good individuals have had their charge “bruised” because of job loss, preventing them out of qualifying for a home mortgage. This new market has also generated a new breed of entrepreneurs, starting their own companies out of necessity because of the job marketplace. These new entrepreneurs need to generate no less than two decades of recorded income from this brand new company to qualify for a home mortgage. All these “mortgage contested” debtors seem to rent to own homes as a means to start down the road of home possession. It’s important to comprehend the principal documents used when you lease to own homes, so let’s have a look.
Residential Lease Agreement
A lease to own trade has two components to it, a rental arrangement implemented simultaneously with an option to buy agreement. The first portion of the trade is insured by the Residential Lease Agreement. This agreement sets the conditions for the rental when you lease to own homes. It sets the fundamentals like the period of the rental, the monthly payment and also the duties of the renter buyer and landlord. It’s necessary that you have a written document that spells out everybody’s responsibility so as to prevent disputes or confusion. Carefully examine the rental arrangement that you’re considering so that you understand what your duties are (like lawn care, pest management, etc) and that you know what they think about a default option and the landlord’s remedies for this.