The caveat “Buyer Beware” just doesn’t get old. While this message is not a paid endorsement by the National Association of Realtors; proper representation in lease to own and any other home buying/selling transactions will serve you best and keep you from the clutches of the “gotchas”!
Case in point: lease to own opportunities. They’ve been a viable alternative for future buyers who technically rent for a period of time with intent to buy the “rental” property. This arrangement typically suits potential sellers as well as they are provided some peace of mind that these future owners of the property will have its best interests at heart and will not subject the property to the indignities often perpetrated by tenants.
However…..there is an apparently little known snag that can sneak up and distill this ideal arrangement.
When the renter-future buyer enters into the initial arrangement, the agreement that goes into effect cites the portion of the lease payment that will be allocated toward the purchase. The big but here is that when it’s time to transition to ownership and the appraiser pulls out the comparable rent schedule, if the payments that have been made are “over market”, it will instead be that rate of rent applied toward the future purchase.
At the end of the day, the economy and your credit are the players in your transaction, but treading cautiously with how today will impact tomorrow is your best bet.