Zillow Advice: Home Ownership - Do I need an agent or a lawyer if I was to rent to own? http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ Zillow Advice | Zillow Real Estate I do subscribe to your need ... http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ I do subscribe to your need for an attorney.<br/><br/>As a real estate broker, I have advised good folks after they have been hurt in rent to own situations. &nbsp;Asking questions prior to signing tells me you may already know the things I will mention below. &nbsp;<br/><br/>May I share the three most common pitfalls?&nbsp;<br/><br/>1. The document is written against you and will have language to protect the property as well as the owner all at your expense. &nbsp;Most documents state it cannot be recorded. &nbsp;Some of these "Investors" know the end game is to flip the same property over and over. &nbsp;The documents will have a fine print that says miss one payment and you give up the right to purchase. &nbsp;All other rights are preserved to benefit and for the Seller. &nbsp;Yes, once I've seen a Landlord send a letter on the day after the option period expired stating vacate the property. &nbsp;Their loan closing was delayed and these people lost their money as well as the work they did on someone else property.<br/><br/>2. Check the maintenance responsibilities in the document. &nbsp;Many times these homes are not in the best condition. &nbsp;The roof begins to leak. &nbsp;Are you responsible for the roof being repaired or replaced? &nbsp;Repairs can get expensive. &nbsp;Most little money down loans require the house to have an expectation that the roof will have two years life remaining at the time of the loan being written.<br/><br/>3. Can you obtain a refund of your option money? &nbsp;Does the document say deposit or fee? &nbsp;Deposits are generally refundable where fees are not.<br/><br/>We all want you to be homeowners but please read the document carefully in an effort to protect your quest to become a homeowner.<br/><br/>Best,<br/><br/>Bob Sorey&nbsp; Thu, 29 Aug 2013 12:17:00 GMT http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ 2013-08-29T12:17:00Z If you know all the ins-and-outs ... http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ If you know all the ins-and-outs you don't.&nbsp; Thu, 29 Aug 2013 12:08:00 GMT http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ 2013-08-29T12:08:00Z Well, msnecia, many of us ... http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ Well, msnecia, many of us agents think that buyers are crazy for pursuing rent-to-owns or lease-options, especially if they have bruised credit, and here's why.<br/><br/>1. The selection is extremely limited. Less than one in a hundred homes is available for a RTO.<br/>2. There's a price to pay for the option. Typically, the option fee is substantial - much more than key money for a rental; on top of that, the rent is higher than market rents, and finally - the option price is usually above market, as well.<br/>3. Once you have healed your credit, you will probably want to take that buying power and go out and pick out a home that you really like AND that is priced fairly, and that's harder to do if you've sunk a bunch of money into a option already.<br/>4. You may not have any recourse if the seller flakes out. If they go bust, your "home" may get foreclosed on, and the seller may not have any money for you to go after.<br/><br/>In addition to an attorney and agent, I strongly urge you to consult an accountant.<br/><br/>So. Save your dough, rent until your credit heals, then go out and buy a good, fairly priced home.<br/><br/>All the best, Thu, 29 Aug 2013 07:23:00 GMT http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ 2013-08-29T07:23:00Z @tim and rachael,you could ... http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ @tim and rachael,you could have actually kept your smart mouth to yourself and your advice was worthless.thanks to the others!! Wed, 28 Aug 2013 23:48:00 GMT http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ 2013-08-28T23:48:00Z Msnecia: Some agents can ... http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ Msnecia: Some agents can help with rent to own. Rent to own usually requires a substantial non- refundable down payment. The monthly payment is higher than fair market rent and only a small portion goes towards ownership. If you can't get financing at the agreed upon time, you will probably lose the money you've put in so far. Your choices will be much larger spending time repairing credit and saving the down payment. Wed, 28 Aug 2013 22:36:00 GMT http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ 2013-08-28T22:36:00Z Tim and Rachel: your response ... http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ Tim and Rachel: your response is way out of line. Go read the portion of the good neighbor policy about respect. Wed, 28 Aug 2013 22:31:00 GMT http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ 2013-08-28T22:31:00Z frankly, not clear on what ... http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ frankly, not clear on what the other agents were trying to say...<br/>leasing to own is a low cost way to get into home ownership.<br/>a well advised agent is certainly capable of advising you on value<br/>and structure for the deal to purchase...that said, it is always best to <br/>have legal counsel memorialize terms and conditions in a legal document. Wed, 28 Aug 2013 21:29:00 GMT http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ 2013-08-28T21:29:00Z I'd say you need a doctor ... http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ I'd say you need a doctor because you have a brain problem. Next go see a lawyer and hopefully they will explain why you don't want to fool with those, it's like holding a loaded gun and not knowing how to shoot it. You can lose more than you think.<br/><br/> Wed, 28 Aug 2013 21:02:00 GMT http://www.zillow.com/advice-thread/Do-I-need-an-agent-or-a-lawyer-if-I-was-to-rent-to-own/509047/ 2013-08-28T21:02:00Z