Are You Required To Buy The House In A Rent To Own Home Contract? – Charleston Rent To Own Program

A really common question and concern from people looking at renting to own a Charleston house is “are you required to buy the house in a rent to own home contract ?” at the end of the rental term.

As an example…

… lets say you found a great Charleston rent to own home and agreed on an attractive rent to own agreement (lease option) with the seller that looked like this…
– $10k upfront
– $1,800/mo
– $200k purchase price option at the end of the 24 month rental agreement

Under that example, you have the opportunity to purchase the home for $200k within 24 months (often times you can purchase the home BEFORE the rental agreement ends with no problem).

So, Are You Required To Buy The House In A Rent To Own Home Contract / Agreement?

If the 24 months comes up and you’re just not ready to purchase the home… but you still love the home and want to live there still… just connect with the seller and see if they’re willing to offer you an extension on the rent to own contract.

Often times, if you’ve been a great renter and show a genuine intent to buy the house… the seller will work with you (it’s in everyones best interest).

If the 24 months comes up and you’re just not ready to buy and you don’t want to stay in the house… you can move out and not purchase the house… usually with no penalty.

What Happens To The Money You’ve Paid The House Owner Up To This Point?

If you choose not to buy the house, the time you spent in the home is treated just like a rental… since you didn’t exercise your option to purchase the home.

That’s the key distinction you need to be clear on with rent to own home programs.

That there are two parts to the agreement…

  1. A Rental Agreement: First first part is a normal rental agreement. You pay a monthly rent on the house for a specified term.
  2. The Option To Purchase: This is a separate agreement that gives you the option to purchase the house for an agreed upon price at a future date.

If you decide not to buy the home… you’re just deciding not to exercise your option to purchase the house… and everyone walks away looking at that past time as a rental.

Make sense?

Really it gives you as the rental tenant / buyer great flexibility in the deal. If you want to buy the home… you can at a set agreed upon price. If you choose not to… no biggie!

That about does it for this article 🙂

If You’re Looking for Charleston Rent To Own Houses…

… check out our Charleston rent to own house program on this website and see our available rent to own / lease option homes by clicking the link below.

See Available Charleston Rent To Own Homes >> 

 

Steve Banis

About Steve Banis

When I originally began investing in Real Estate, I wasn’t a real estate agent. And I still do not list houses as an agent! No, I’m not proposing that I list your home, or have you sign some kind of agency agreement. My involvement with you and your property is for our own investment portfolio.…. not the score-sheet of a Broker. My background includes that of being an executive for several Fortune 500 companies since 1968, an owner of real estate since 1975, a businessman in Boston, MA and Charleston, SC. I am a VETERAN of THE UNITED STATES ARMY, beginning my Service career January 1964, in Columbia, SC on Tank Hill at Ft. Jackson. I have been up and down the ladder in my business as well as my personal life - therefore I am well qualified to understand the various situations and challenges of the homeowners we meet. We can help provide solutions to various real estate challenges and situations. My passion is to assist in the sale and purchase of real estate. The rest of this report tells you how our company, CASH HOMEBUYERS of SOUTH CAROLINA, LLC., will assist you by purchasing your home.

Get More Real Estate Market Info... Subscribe Below!

Find Rent to Own Homes In Charleston - Free List Enter your information HERE to gain access to GREAT rent to own houses in the Charleston area. (Also get email alerts when new Charleston rent to own homes are available.)

  • This field is for validation purposes and should be left unchanged.

,

Comments are closed.