Читать книгу Rent-to-Own: How to Find Rent-to-Own Homes NOW While Rebuilding Your Credit - Wendy Patton - Страница 5

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 nonrefundable 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?

In later chapters we will go into great detail about the whole process. Right now I just want you to have a foundation of understanding about renting-to-own. Let’s recap.

A rent-to-own transaction between you (the tenant-buyer) and a seller is comprised of paperwork and contracts, which include:

•A Sales Contract containing the price

•An Option Agreement which contains the time period and option fee amount

•A rental period agreement

What you need to remember is that even though you will be signing a Sales Contract, it remains your choice to purchase the home, not an obligation to buy it. You are, however, also guaranteed the right to buy it, if you wish to, and you are financially ready to qualify for the mortgage. An exclusive right to purchase is what your option fee provides for you.