Forms You Will Encounter In a Rent to Own Program
Option to Purchase
The Option to Purchase is a form you will sign to ensure your right to buy the home after the rent to own Term. We use an appreciation of 9% over 3 years (3%, 3% and 3%). From your purchase price add the appreciation and you will come up with the amount you have the right to buy your home for at the end of the Rent To Own Term. We have determined the appreciation numbers through market research and past MLS trends.
Agreement to Lease
This is your Rental Agreement. Once you have found a home we will figure out the monthly rent by adding the cost of the mortgage, property taxes, landlords insurance and your Lease Option Credits. This will be you rent for the duration of the rent to own Term. You will also be responsible for all utilities and maintenance of the home (the utilities will be in your name) and must maintain Tenants insurance during the term. During the rent to own term you will be a Tenant…so the rules and laws of the Tenant/Landlord relationship will exist. To find out more about this go to: The Landlord and Tenant Board
3 to 5 years down the road you will have the Option to Purchase your home. The contract will outline what kind of notification you will provide the Investor about your intention to purchase the home. You will then need to secure a mortgage where our mortgage agent can give you a preferred rate. You will also have to save up for closing costs on the home (land transfer tax, legal fees, disbursements, etc.). Try and budget 1.5% – 2% of the sale price. A Real Estate Lawyer can help you close the deal and make sure Title to the home is properly transferred.
Congratulations…you are now a home owner!