Let’s Take a Look at Rental Agreements
In the previous post I discussed each contract and the basic points each covered. Today, I am going to share with you the specifics of a Rental Agreement, the type you should have and some of the key clauses that should be included in the agreement.
Most good Rental Agreements take the guesswork out of the picture for you, making your life significantly easier. They do this by having all of the regular terms and conditions pre-printed. One important thing to remember is that you should NEVER draft your own rental agreements (or any other contracts for that matter) from scratch. Always use pre-created contracts (preferably pro-buyer) and just fill in the relevant details. Creating your own contracts can cause you enormous headaches and potential legal problems.
There are three different types of contracts: Pro-Seller, Neutral and Pro-Buyer. You, as the buyer, will want pro-buyer contracts for your transaction, whenever possible. You can order these on my website if you don’t already have them. They offer you the most protection and the most favorable terms. The type of contract can make a HUGE difference. If you use the pro-buyer contracts, the seller is responsible for all repairs, or you can choose to share the expenses. Using a pro-seller contract or a lease from a real estate agent could result you might end up being responsible for ALL repairs to the property during your rental period.
Here are a few clauses you will find in my rental agreements that make them pro-buyer.
Insurance
It’s very important that the owner continue insurance. He or she is responsible for insuring his home during the rental period, not you. You will want to obtain renter’s insurance to protect your possessions, but the home itself must be insured by the owner (seller).
Maintenance, Repairs or Alterations
The Landlord gives the tenant the right to make repairs or improvements to the property at the tenant’s expense. This is where you will want to put in who will pay for what repairs. I personally like the owner to pay for repairs during the option period when I am the buyer.
Rental Payments
It is very important when you are doing a lease option that you make SURE the seller is paying his mortgage payment. If he doesn’t pay it, your dream will become a nightmare. I recommend you have your monthly payment made to their mortgage company versus to the seller directly.
Check out Chapter 7 of Rent-to- Buy for more insight into Rental Agreements. Rent-to-Buy is a great gift for the Holiday’s. Order your copy TODAY!!
Tags: Rent-to-Buy, Rental Agreements, Wendy Patton, wendy patton website
