A really common question and concern from people looking at renting to own a South Jersey house is “are you required to buy the house in a rent to own home contract ?” at the end of the rental term.
As an example…
… lets say you found a great South Jersey rent to own home and agreed on an attractive rent to own agreement (lease option) with the seller that looked like this…
– $10k upfront
– $1,800/mo
– $200k purchase price option at the end of the 24 month rental agreement
Under that example, you have the opportunity to purchase the home for $200k within 24 months (often times you can purchase the home BEFORE the rental agreement ends with no problem).
So, Are You Required To Buy The House In A Rent To Own Home Contract / Agreement?
In the event that the twenty-four-month period passes and you still aren’t prepared to buy the home, But you continue to cherish the house, and you hope to one day call it home. Simply get in touch with the property’s owner and inquire as to whether or not they would be willing to grant you an extension on the rent-to-own agreement.
It’s in everyone’s best interest for the seller to work with you if you’ve been a good renter and show genuine intent to buy the house. Many times, this will result in the seller’s willingness to work with you.
You have the option of moving out of the house and not purchasing it if, when the 24-month period is up, you realize that you are not yet prepared to buy a home and that you do not want to continue living there. in most cases, without any sort of sanction.
What Happens To The Money You’ve Paid The House Owner Up To This Point?
Because you did not exercise your option to purchase the home, any time you spent living there will be regarded as a rental payment, even if you ultimately decide against making the purchase of the property.
When it comes to rent-to-own home programs, this is the most important distinction you need to get straight in your head.
That the agreement is comprised of two distinct parts…
- A Rental Agreement: First first part is a normal rental agreement. You pay a monthly rent on the house for a specified term.
- The Option To Purchase: This is a separate agreement that gives you the option to purchase the house for an agreed upon price at a future date.
If you make the decision not to buy the house, you are merely choosing not to carry out the next step in the process, which is to exercise your option to buy the house, and after that, everyone considers that period of time to have been a rental.
Do you follow?
In reality, this provides you, the buyer or renter, with a great deal of leeway in the transaction. You are able to buy the house at the predetermined price that has been agreed upon if you are interested. If you don’t want to, that’s totally fine with me!
That about wraps up everything I wanted to say for this article:
If You’re Looking for South Jersey Rent To Own Houses…
… check out our South Jersey rent to own house program on this website and see our available rent to own / lease option homes by clicking the link below.