What is Rent-to-Own?
Are you like many others who have no idea what a Rent-to-Own is? My new book Rent to Buy discusses what a Rent-to-Own is and much more. Rent to Buy offers a hands on guide to buying a home on lease option from the home buyer’s perspective as well as the real estate agents who serve them.
Before we can look at why we would want to buy a home and how to buy a home on a “rent-to-own” basis, we first need to understand what renting-to-own is. A rent-to-own can also be referred to as a “Lease with an Option to Buy,” a “Lease Option” or a “Lease to Own.” In this book we will call it a “Rent-to-Own”, but these words can be used interchangeably for the most part.
In a nutshell, a rent-to-own sale means the seller is allowing you, the future buyer, to live in the home for a while as a renter before you actually purchase the home from them.
In a rent-to-own transaction, before you move into the seller’s home as a renter, you and the seller would agree on the sale price and other terms. You would pay the seller a non-refundable option fee. Both you and the seller would sign some paperwork covering the lease, the purchase and the option (which gives you the right to purchase the home at a later date) and in approximately one to three years, depending on your agreement, you have the option of purchasing the home.
I say you have the option of purchasing the home because it is important to understand that in a rent-to-own transaction you, as the buyer, are not obligated to purchase the home at the end of the rental period. The seller, however, is required to sell it to you should you choose to buy it. That sounds pretty good, doesn’t it? For a more in dept look at Rent-to-Own’s check out my new book, Rent-to-Buy.
Tags: Lease Options, Rent-to-Buy, Wendy Patton