Profile picture for takeemall777

is there a way to find rent to own homes on this site?

  • September 23 2009 - Cheektowaga
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Answers (5)



A Real Estate Attorney should draft the paperwork, and set up an Escrow Account if necessary.
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Is it an OPTION to Buy, or is it a CONTRACT to Buy?

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What amount of the Rent, if any, is applying toward a Down Payment?

Many Renter/Buyers assume that all of the rent is applying toward a down payment,
when in fact, none of it may apply.  
It all depends on what is written in the Option Agreement, or Contract to Purchase.

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If some of the money will apply to a Down Payment,
is it being held in escrow by a third party,
to keep the Seller from just running off with it?

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Has the Buyer done a Title Search or Abstract to determine if there are existing Mortgages, Liens, or Judgments against the Property?

What is to prevent the Seller from taking out a Loan later, and damaging the Title?

What happens if the Seller loses a lawsuit and a judgment lien is placed on the house?

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How does the Buyer know that the Existing Mortgage or Mortgages are being paid?

If the house is Foreclosed on because the Seller fails to pay the Mortgage, the Renter may have no rights,
and may be put out of the house (with a few excepted states, including California)

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Is the Seller going to Finance this when the day to Buy it arrives,
or will the Buyer be getting New Third Party Financing (Bank or Credit Union Loan)?

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What about the Existing Mortgage - is there a Due on Sale Clause that might be triggered
by the Rent to Buy agreement? *

* If the Present Mortgage Holder considers the Option to be a Transfer of Ownership,
it may trigger the Due on Sale Clause in the mortgage (the entire Loan Balance is accelerated and due immediately).

Likewise, if the Property Appraiser deems it to be a change of Ownership,
there may be Property Transfer Taxes or Intangible Taxes.

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About the Rental Period:

Is there a Written Lease?

What if the Buyer is late with a Payment or otherwise violates the Lease?  
Does that terminate the Agreement, and does the Buyer lose any money they have paid in?

What if equipment fails during the Rental Period (hot water heater burnout, AC quits, major plumbing problems)?
Who pays to fix it?  What if they don't?


Who will insure the house?  
Is there Tenant Insurance to cover the Renter / Buyer's personal property?

What if the house is severely damaged by a storm or fire - is there a provision for that?

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See a Real Estate Attorney before entering into such an agreement.

There are serious consequences involved.

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Best wishes,
Fred
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  • September 23 2009
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Rent to own is a really good way to get scammed. A private mortgage is a less risky path (although frequently still full of issues). If you do go down this route make sure to have an attorney involved.


It is probably in your best interest to either rent until you can afford to buy via conventional means or pay cash for a lower dollar property.
  • September 23 2009
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Profile picture for takeemall777
my source of income is not on the books i have alot of money saved but cannot apply for a loan my only option is rent to own
  • September 23 2009
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A better source would probably be craigslist.
  • September 23 2009
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Profile picture for BMFPitt
Why would you want to do such a thing?
  • September 23 2009
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