Bill has made a valid point in his blog. I just did the taxes of someone who is buyer a rent to own home. The fees were astronomical! There are also some built in fees in the contract that my tax clients did see. NO representation.
Much care needs to be taken when entering into a contact like this.
Via William Feela Realtor 651-674-5999 No. Branch,MN (WHISPERING PINES REALTY)
This is more for the sellers. Should you rent your property to someone that is going to buy it.
Scenario...I have a seller who received an offer. The buyer wants to rent the house until they sell ther home out of state. My sellers think this is great because they don't need to sell in order to move.
Problems we need to make sure are covered...
Price for the home is agreed upon.
The list price for the buyers home is in the market price range for the area.
The area the buyers home is has a market that is fairly active.
The buyers home is NOT in a short sale or late on payments.
Earnest money down. (Possibly non-refundable if the sale does not close)
Proof that the buyer can perform.
How much time to give the buyers to sell.
Should there be a damage deposit in case the deal falls through.
Rental contract and rental amount.
Does any of the rent monies go towards the purchase. (I say NO)
What action does it take to get rid of the buyers if they can't perform.
There are even more issues depending on the property.
Renting may be an option, but if a sale is the main object, look very close at all the issue that could complicate the object.
It is chilly today so My grand Daughter is bundled up.