Free Customizable Rent To Own Contract Template

Free Printable Rent To Own Contract TemplateThe rental option is becoming a popular trend in the contemporary real estate market. Due to massive impact of the global economic downturn, most people are no longer amenable or capable of buying their own houses hence renting one makes more financial sense. However, you can make sure that even if you cannot afford to purchase your home for the moment, you can still potentially have one through rent-to-own types of home purchase.

Hence, it is primarily important for you to learn and understand all the basics of this buying option to make a profitable and fruitful deal. When you go and rent a house in lieu with the premise of eventually owning the property, there are innumerable and oftentimes complex components you have to basically deal with. Make sure you are ready for this investment type and get the most out of your venture.

Rent-to-own also refers to lease purchase or lease-to-own options which combine the concept of renting out a property to purchase it in a specific or given period of time. The most usual takes a span of three years or even less wherein the property owner and the tenant has prior agreement on the price of the subject property.

In the course of buying a property through lease purchase, the tenant is obliged to pay an option fee which may range from 1% to 5% of the overall price and this option fee is automatically credited or added to the agreed purchase price. As the name itself implies, the buyer is amenable to paying the monthly rent and the additional rent premium on top of the rent amount he is going to pay in a regular or monthly basis. The same rent premium is basically added or also credited to the agreed upon purchase price of the subject property.

In terms of knowing the contract features of the lease-to-own type of home purchase, make sure you are familiar with the different provisions included in the said agreement. First off, the sale price of the property as well as the monthly rent is determined by the current market. However, it is important to note that this price is also amenable to negotiations just as you do in conventional home buying transactions or the traditional rental ways. Hence, it is a must that buyers must also be well-versed when it comes to real property trends and prices in order to make the necessary negotiations on their favor.

The length of time in paying the said lease purchase likewise depends on what both parties, the buyer and seller, would agree upon. For instance, buyers choose a long period of payment because it allows them to build home equity while sellers wanted a shorter payment period for obvious reasons.

Rent-to-own options are generally designed to help home buyers who in one way or another cannot afford the conventional way of buying their dream house. It is also one method of ensuring that your money is going somewhere even if you are merely renting the property in the moment.

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