Profile picture for Sissy40

rent to own or land contract

I am coming out of a divorce and short sale of my home. I can't get a mortgage so I am looking for other options to get a home. I've found a newer home and owner is willing to finance either with rent to own or land contract. Which is the best way to go?
  • January 28 2011 - Bay City
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Answers (3)

You might be best served by a real estate attorney for this matter. Have him/her review all of the documents to be sure that your interests (and money) are protected. Lease to own is not very common and I am not well versed in it. I have also asked other agents (20+ year agents) in my office about the process and they weren't comfortable with it either. We do have forms online for land contracts, but not lease to own.
  • January 28 2011
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Profile picture for Brett Sloan
A Land Contract would be better if you want to actually buy the home. Make sure you get a Memorandum of the Land Contract recorded along with Title insurance on the property letting you know what underlying mortgage is recorded against the home and to check any other leins that may be against it.  I agree with Jim, you may want to consult an attorney or a good agent to help you out.  If the price and terms are not favorable for you, then I would do the "rent to own" and re-evaluate in a year or two.

 Good Luck, Brett
  • February 09 2011
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I agree with Jim. You def want your attorney to look over the contract. Maybe you'd be better off with leasing with an option. This in my opinion meant you had a time frame to wave your option of purchase, after this date you would need to renegotiate or get out.. Just my opinion.
  • February 11 2011
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