Yes, it is perfectly legal and acceptable in todays economic climate. Many negatives answers are listed here and they are all written by realtors or brokers. Anybody care to wonder why realtors and brokers are so against it?
You don't have to pay a 6% commission (3%buyer agent, 3%seller agent) is the biggest reason they advise against it. If the " licensed" real estate industry was so above board and looking out for you, why/how did the housing bubble occur? Somebody had to sell all those houses knowing that bogus loans were used by people that could never repay. The only thought was of higher & more frequent commissions! That is what a RE agent or broker won't tell you!!
Call me or E-mail me if you have any questions or want the truth about Rent to Own.
Albert Marrujo Jr
You are desperate!
Your Credit or Finances, or both, will not allow you to go the conventional route:
You need the Seller to help you out!
The Seller will know it, and you are going to pay dearly for this service:
There aren't too many altruistic Sellers out there.
The terms that can be written into a Lease/Option can be dangerous to you:
How long is the Option period?
How much money are you putting in to the Option?
What happens if you are not able to execute the Option?
How do you know what your financial situation will be 2-5 years from now?
How much is the rent in the meantime?
Who will be responsible for maintenance and repair in the meantime?
What will be the Market Value of the home in 2-5 years?
What will be the Selling price 2-5 years from now?
This is the Ultimate Caveat Emptor!