Lease-to-Own, part 1

You've likely heard of rent-to-own furniture and appliances--plans where you pay periodically for a couch or large tv set over a certain amount of time until you own the item. Did you know that some people offer the same option for houses?

If a seller finds that their home just isn't selling they may decide to go this route. Also, sometimes a seller may offer this option to a buyer who is having a hard time getting financing. This way the buyer still has the opportunity to buy the property.

As with any real estate transaction, a lease-to-own agreement calls for a lot of thought and a consultation with a real estate professional. The two parties involved negotiate the terms and sign a contract that is legally binding.

In a lease-to-own agreement, the buyer is not the owner, but they are not a renter either. If you decide to enter into a lease-to-own agreement as a buyer, you will have to take charge of the maintenance and property taxes on the home you are leasing.

Check back on Monday for more on what happens during a lease-to-own situation.