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 agreement gives a potential buyer the right to purchase, and does not make it an obligation that needs to be fulfilled. 

The role of agents of Paradise valley is not only to assist in finding a suitable property for rent to own, but also assist the potential buyer with the contract and dealings. A buyer does not know the terminology involved in real estate deals thus is unable to make a well-informed decision. When an expert guides and provides advice during the purchase, a buyer knows that he/she is being guided along the right path. 

Alternatives in agreement and option payment 

In certain cases, the agreement is made in such a manner that the terms state that one has to purchase the property before the lease expires. The buyer should make the choice and thus, it is necessary that he is guided by an expert, who can stop the buyer from agreeing with risky terms. The amount to be paid as option is negotiable as the percentage can vary from 3% to 7%. This amount is calculated from the purchase price which has been agreed by both the parties. In some cases, this amount is added to the purchase price and while purchasing the property an individual need not pay this amount again.                                        

Purchase price 

The agreement should specify the amount for purchase or any regulations for its change or modification. Both the potential buyer and seller need to either ‘lock in’ a certain rate or agree to determine it at the time of purchase. It is advised that for rent to buy agreements the potential buyer should try to fix rates so that even in a market with increasing house prices, one does not need to pay a high price.  

Some other terms which need to be determined as part of the contract, are the maintenance costs and amount to be paid as rent. In order to make the right decision regarding all these terms, one should consult experts who are provided by Paradise valley in the form of their agents.  You can simply call the Mccomb Realtors who will help you with all the paper works and also explain the nits and gits of the whole deal. The deal will be made easy and effective at the same time. You can also clearly understand the reasons that are necessary to have a Real Estate Broker Near Paradise Valley so that all the terms and conditions are properly executed and no hidden clause or inconvenient situations comes up in the future.