Terms of a Rent to Buy Agreement
For a home to be purchased, sale takes place only after the offer for it has been accepted and amount paid to complete the transaction. Individuals looking to buy homes often do not have the entire amount required to purchase a property and use services of mortgage to make the purchase. In this case the buyer should be eligible for obtaining mortgage. The eligibility criteria are that an individual should have a proper credit score and should also be able to provide certain amount as down payment. Rent to own An alternative to this form of purchase is the rent to buy agreement. This method of purchase allows a buyer to rent the property and is given certain time to make the purchase. The time limit for purchase usually extends up to the expiry of the lease. In order to purchase a home in this manner one has to pay a certain amount known as option money. This amount is paid as a form of agreement that one has the intention of purchasing the property after certain time. This a...