Rent to own house could be a very good option if you aren’t financially stable to buy a house but, you have found a place that pique your interest. A question that so many people are asking are how they can get into rent to own agreement.
As for the terms of rent to own house, the seller will set how the agreement goes but most likely, both the renter and property owner will be signing a contract that the renter will be renting the property for 1 to 3 years and on those period, the renter will be paying above the market rent with the excess rent be credited to down payment as contract ends.
Rent to own deal do offers the chance for prospective buyers settle in a house they want to buy while being able to save enough for down payment, improve their credit rating or even wait for negative reports on their credit history to be forgotten. Now most of the time, rent to own homes in utah contract is created when the sellers are in dire need of moving out and their house isn’t selling quick.
Both the homebuyer and the seller should have their contract reviewed by a legal professional as there are several issues that should be addressed. For the lease agreement terms, make sure that it included the length of lease period, amount of the rent, who will be responsible for paying the property taxes, homeowner and insurance fees during lease period and also, you need to clarify who will pay for maintenance, repairs and utilities during lease period, rent credit for the down payment and to how it is held until time of purchase, both parties must agree to write what would happen to the credit if ever the renter has opted out buying at the end of their contract and the likes. Check this website for more info!
For the renters, it is essential to check the options for rent to own house contract than deciding to rent a less expensive house and then, save the money for down payment. Needless to say, if you have dibs on the house and wanted to buy it, you will probably go for rent to own contract even if this will cost you more. To know more about the advantages of finding the right real estate to invest to, visit http://www.britannica.com/topic/real-property.
Take time to read and understand that as soon as the title is transferred to your name, it will be you who’s accountable for whatever that is going to happen to it. Prior to buying the property, it will be a good idea if you would hire a home inspector to check for possible repairs and renovations needed to be done in the house.