Rent-to-own agreements may also include an option fee. If you don’t know if your rent payment is affordable, learn how much you should spend on rent. This gives you equity in the property, alleviating the financial burden of the initial down payment, and may make it easier to get a mortgage. If they do contribute, the price of rent will likely be higher. Rent payments may or may not contribute as payments toward the purchasing option. The purchase price can also be determined when the contract expires. The purchase price for the property may be established when the agreement is signed and is typically higher than the market value. At the end of your lease or before it, you’re given the option to purchase the property. Information to review in your lease includes the following:Īfter reviewing the lease, you sign the agreement and begin your lease term. Make sure to review the contract thoroughly so you adhere to terms. You and your landlord agree on a monthly rent fee, a lease term, and any other stipulations. The agreement is made up of two parts: the lease agreement and the purchase option. Turn ideas into reality with Microsoft Excel Learn MoreĪ rent-to-own contract allows an individual to lease a property and have the option to purchase it later. Turn ideas into reality with Microsoft Excel
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