How to skip common Rent- to- own mistakes?

Moving in to the house and then working for the down payment – A nicety offered to working class people! Started somewhere in European continent, and now rent-to-own works for real time properties 

Thinking about skipping common rent-to-own mistakes! How nice it’s to move into a residential property without spending months waiting for mortgage sanction.

Never sign the contract without a lawyer

Not all rent-to-own contracts are the same. Some of them sign a rent-to-own for three years.

Hiring an attorney to check out for UNCLEAR TITLE does worth one’s time and money.  Living in a property for three to four years paying rent in huge figures, until the dweller buys the property is not as easy as it seems.

They move in only after paying “option money”, which ranges up to 7% (differs according to state regulations). Also, an attorney could be able to find out, if the property has an existing mortgage or taxes in due (Income tax, property tax).

Rent-to-Own doesn’t happen with Encumbrance

Looking out for ENCUMBRANCE – a common case with sellers. It’s not possible to go on with the decision, when there’s an encumbrance. Even, if the buyer is going to pay the “option money”, it’s not possible for the buyer to take over the property if there’s an existing mortgage, loan or easements.

Apart from the first two states, “easements” play the bigger risk.

*Easement – The one who claims that he has the sole ownership over the property.

Seller’s bad financial position

Even in case of rent-to-own, a check on seller’s financial position is needed. Checking out his/her financial position is good. Bad credit scores aren’t going to help anyways.

Rent-to-own comes with home inspection

Who cares about spending time and money on home inspection? What if the buyer is going to end up with damned expensive repairs? Checking physical condition of the house someone is going to rent is a thumb rule.

(Pictures courtesy: various sources)