How Do You Write A Lease-To-Own Contract?
Writing a lease-to-own contract is nothing new, and this type of contract is regaining popularity as a way to buy and sell property. Lease-to-own contracts are useful to both parties in that a party can back out of the agreement without considerable trouble or finish the deal and properly transfer ownership. Writing a proper lease-to-own contract also bypasses many legal issues. Be sure that you are willing to enter into a lease-to-own contract. This is not a simple rental agreement, nor is it a simple sales agreement. You are taking the place of the mortgage holder with this type of contract. Document everything you do in writing. Use the proper terms in the lease to own contract. Do not use the words “seller” or “buyer,” but instead use “tenant” and “landlord” as you would for a rental agreement. This helps everyone steer clear of legal issues if something were to go wrong. It also helps the tenant acquire mortgage backing later on. Document the fair market rent from the beginning of
