lease to own : ezLandlordForms

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Michelle C

started a topic over 15 years ago

We're moving from TX to NM. A couple liked our house and wanted to know if we were interested in lease to own. It's an older home and the value is in the beautiful old wood floors, molding, original hard ware - all of which can be damaged or stolen - reducing the value of the home. Anyone with good experience with this?

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Joseph B

said over 12 years ago

Yes, what are those mortgage requirements?

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Donna

said over 13 years ago

A Lease to Own by definition means that a tenant is leasing with the desire to purchase or "own" the property after certain criteria is met. An option gives the tenant an option to purchase at the end of a specified lease term. These can be structured with a down payment at the beginning, and higher rental payments with a portion going to the purchase price. OR some are just a time frame and an agreed upon sale price. It is important to structure these agreements so that your tenant acquuires NO EQUITABLE INTEREST in the property while renting. I would strongly suggest including this type of add-on to any Lease Purchase Agreement. If you are in unfamiliar territory, have an attorney review any agreement before entering into it.

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Miriam L

said almost 14 years ago

There is another issue and that is the Mortgage. If the tenant plans to get a mortgage there are specific requirements that the tenant and landlord have to follow. Let me know if you are interested in knowing these mortgage requirements.

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V. S

said over 15 years ago

i'm on this website because i am in an "occupancy prior to closing" situation which is similar to rent-to-own. the problem is: they don't pay. we are carrying the mortgage and now have to try evict them even though we are not really landlords, just home owners who were trying to sell. don't do it if you are not staying in town to watch over things. also, it will be a hassle to collect rent if you are not in town.

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Ralph F

said over 15 years ago

Lease to own is great in certain situations. First of all, screen those tenants extra carefully, to make sure they'll not only treat the property well and pay their rent, but also theoretically be able to buy the house. Also, you may want to avoid locking in a specific price, in case you want to change your mind later.