 |
Rent to Own |
| |
 |
I want sell my house on a rent-to-own. If I set the rent at $950/month for a 1 year term with $250 going to purchase, the tenant will have $3000 after 1 year to use on an agreed price of $140K. Do we need to ave an attorney write this up? |
| |
| |
 |
You need a lawyer and your prospective tenant-buyer needs a lawyer also. Here are a few questions:
If they have to leave town, can they let someone else take their place in the deal? Do you still have the right to take out a new mortgage loan on the property? Can you keep the $3,000 if they trash the place and desert it? Would you have the right to sell to someone else who appeared offering more money and all cash? Would they still be obligated to buy if they couldn't qualify for financing? Do they lose the $3,000 or do you keep it? Do they still get the $250 credit if they're late with that month's rent? Who holds the monthly $250, does it become yours immediately, does it remain theirs legally, or is it held in trust? What if the water heater dies just before the closing, who pays to replace it?What happens if you can't make your mortgage payments and the property goes to foreclosure?
Your lawyers can think of lots of other things that should be nailed down in a written contract, so that it's fair to everyone, protecting your interests and the buyers'. |
| |
|
Edith
Originally published on January 28, 2009 |
| |
| |
|
Back to Summary
|
< Previous | Next > |
| |
|
|
