Rent to buy facilitates enjoying a property on rent while gradually paying the purchase fee in installments along with rent during the period of lease contract.
This serves the interest of people who desire to own a property but have poor credit rating or run short of necessary funds to make the down payment. The option fee is the money that the renter pays to take possession of the property after the expiry of rental agreement.
It is customarily fixed at 1 to 5% of the agreed upon purchase price of the property and is paid over the span of lease agreement with monthly rent. The renter stands to lose the option fee if the contemplated purchase does not take off.
Within the rent period, the tenant assumes responsibility for damages incurred to the property and is liable to fork out the penalty. The owner cannot cancel the rent to buy agreement at a later period after entering the sublease agreement if the property price shoots up.
With rent to own lease agreement or contracts option owner may initiate legal action to take possession of his property in the event of renter defaulting on payment against the contract’s norms.
The contract may strictly enforce the clause wherein under some inadvertent or willfully created circumstance, the renter fails to make the contemplated purchase; no refunds would be made to the renter. The onus of maintaining the property lies with the renter and he needs to keep it sound and secure at his own expense. The renter shall compensate the owner for any damage to property sustained during the rent period.
Renting home can be a good option for those who do not find it affordable to buy the home. However with the advent of online shopping and listings, you can now buy homes for sale in your budget.
In case if you want to Search Canada Homes for buying you may check out the site here at searchcanadahomes.com that can help you best. Here you can also find various Southeast Edmonton homes for sale listings from which you can get the best that suits your requirement.