Rent To Own Homes, Houses and Real Estate

What is Rent To Own Real Estate?

Normally you would look for a home, and once you have found that perfect home, in an ideal neighborhood, then you would arrange financing and purchase the property.

Rent or Lease To Own is a twist on that concept which allows more flexibility in making that purchase decision and allows for a change of mind. In the current economic environment when job losses are on buyers minds, the cost of fuel for transportation is rising, the neighborhoods that were once vibrant may change over a period of time, then flexibility is a concern.

With a lease to own property you would normally enter in a contract that has the following components:

o A Non-Refundable Option fee to purchase the Property at a

future date is established.


o A purchase price for the home is established and stays fixed

in the contract for the term of the lease.


o A lease period is established from 1 to 2 years.

o Provisions are made for maintenance of the home with the

leasees being responsible for a fixed sum of repairs
per month, while other repairs exceeding that sum
are the responsibility of the landlord.


o There may be on-time rental payment incentives.

o A supplemental payment may be made each month by lease

agreement toward the purchase price of the home.


o The leasee may benefit from a property value

appreciation during the term of the lease.


o At the end of the lease period, the leasee may walk away

from the property without further obligation.


o If the leasee purchases the property, then the monthly

supplemental rent toward the home purchase and the option payment are applied to the purchase price at
buying time.


o The leasee has the flexibility to purchase the property

any time during the lease period.

Rent To Own Interest Form