Home Buying in Jamaica>Question Details

Claskio, Home Buyer in Jamaica, Queens, NY

What is the deal with a rent to own property?

Asked by Claskio, Jamaica, Queens, NY Mon Feb 8, 2010

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Answers

2
Hi Claskio,
Rent to own properties often give the non-traditional buyer an opportunity to purchase a home. What usually happens is the seller/landlord makes a deal with the tenant/potential buyer where a portion of the montly rent may be applied either to a down payment and/or mortgage payments. Each transaction could be dramatically different. If you have such a potential situation, I would highly recommend discussing the lease with a real estate lawyer to ascertain whether all the "i's" are dotted and all the "t"s crossed. If I can be of further assistance, please contact me.

Ralph Windschuh
Century 21 Princeton Properties
631-467-0009
0 votes Thank Flag Link Wed Feb 10, 2010
Dear Clasiko,

When some owners put their property up for sale and is having a hard time selling the home because of the current market, they may offer a potential buyer the option to rent the property for a 1 or 2 years and then decide if they want to purchase it. A case in point would be, several new Condo developments in Manhattan where some of the developers are offering potential buyers the option to rent for 1 year and if they decide to buy their or any other apartments in the development, the developer will credit the buyer with 6 - 9 months of their rent as a down payment.

The great thing about this is if you are not sure whether you want to buy or wait to see where the market is, you have some time to think about it. It also allows you the flexibility to make sure you are happy and comfortable with the price they are asking, the neighborhood (crime or lack thereof), transportation, etc. It also gives you time to shop aroud for a mortgage and save for a larger deposit. Each seller is different, so before you commit to this, have you attorney review it carefully.

Good luck,

Nirmala Caraballo
Licensed Real Estate Agent
Tel.: 646-479-7873
Email: nhcaraballo@yahoo.com
0 votes Thank Flag Link Tue Feb 9, 2010
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