Critical Components of a Rent to Own Lease!
If you are considering selling your home with rent to own, you will want to read this article. Specifically, we will be discussing the key features that you need in a rent to own lease. After reading this article, you should be able to rent to own your home with confidence.
When you first considered including your home in rent to own homes listings, you may not have given much thought to contract structure. After all, your home may have been on the market for some time without a single offer. But, once you find a tenant buyer, you need to begin thinking about what you should include in the contract.
The number one protection that you need as a seller is to avoid conveying equitable interest. This gives the tenant buyer certain rights that are generally reserved for home owners. The incorrect language in your contracts can mean that in the event the tenant buyer stops making his payments, you will be forced to foreclose and then evict rather than just foreclose. Eviction in most states takes less than a month. But, the foreclosure process generally takes more than six months. This means that you have someone in your house for six months or more that isn’t making payments. All the while, either your credit is being destroyed or you are making a payment on the home that they are enjoying! It is best to hire an attorney or purchase contracts that are specifically designed to avoid this argument.
If the tenant buyer qualifying for a mortgage and eventually taking the home of your hand is important to you, then you should put a stipulation in the contract that they be enrolled in some sort of credit repair program. This can be either a self guided educational program, or they can hire a credit repair company.
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