Lease to own is becoming a popular phrase in the renting and real estate world. Essentially, rent-to-own works a lot like a car lease: a renter pays the rent price for a set amount of time, and at the end of that period they have the option to buy the home. Their rent money goes to the owner and toward an eventual down payment on the home, which sounds like a good deal for both parties. But is it really that easy?
Why we’re asking:
Like most legal issues, rent-to-own agreements can get messy quick. Contracts need to be clear, and both the owner and renter (eventual buyer) need to understand the contract in its entirety. Due to the complexities of such a contract, we have a hunch that there is a high occurrence of fraud, and it can be easy to lose out with such an arrangement. That’s why we’re turning to our legal network for their advice.
Share your thoughts below:
How does lease to own really work?
What are some clues that a lease-to-own situation might actually be a fraud?
Who is at the most risk–the seller, or the buyer/renter?
When is the lease-to-own process good for the seller? For the buyer?
We look forward to learning more about lease-to-own housing.
Please post your answers in the comment field below!