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Answers (1)
- wetdawgs
- Contributions:26854
A land contract is an agreement between seller and buyer where the buyer agrees to purchase the property and the seller finances the sale over an agreed upon period.
A "rent with the option to buy" is payment of rent with an additional small payment each month towards purchase. Usually there is also an upfront deposit before getting into the period. The seller does not provide financing, the buyer must find other financing when the "rental" period comes to the end. The deposit and extra payment each month go towards the sale, but the rent is not going toward the purchase. These do not tend to be refundable if the potential purchaser changes his/her mind.
A "rent with the option to buy" is payment of rent with an additional small payment each month towards purchase. Usually there is also an upfront deposit before getting into the period. The seller does not provide financing, the buyer must find other financing when the "rental" period comes to the end. The deposit and extra payment each month go towards the sale, but the rent is not going toward the purchase. These do not tend to be refundable if the potential purchaser changes his/her mind.
What is the difference between a "rent with option to buy" and a "land contract"?
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