How Tenant Buyer Can Protect Themselves From Rent to Own Scam
Nowadays when people are looking for a house to rent on popular classified sites like Craigslist, and Kijiji. They will encounter ads offering rent to own programs to own a house in 2 to 3 years. It will spark their interest because if they have been renting for a few years and have nothing to show for it. In a rent to own program home ownership isn’t far away if you have a good source of income and a 3% deposit. The problem for interested households in doing an RTO program is which ones are real and truthful and which are Rent to Own Scams. Let me explain the two forms of RTO programs that are popular in the Durham and GTA area.
Tenant First Rent To Own Program
In a tenant first, the rent to own company will not have a house ready to move into. The first will verify your income and deposit with a mortgage agent, and afterward, you go out with a realtor to find a property you like to rent to own. Then RTO company will buy the house and enter into a rent to own option agreement with you to buy them after 2 to 3 years. This is a form of a program here at Tenant 2 Buyer Solutions helps clients with.
House First Rent To Own Program
The rent to own company has a vacant house or just purchased a house that fits the requirements for a Rent to Own tenant. You as a tenant have a chance to go look at the house and see if it something you would like to purchase in 2 to 3 years. The RTO company will still need to verify your income and deposit with a mortgage agent. Then the tenant buyer can enter into a rent to own option agreement with the company.
Unfortunately, rent to own gets a bad name because of a few bad apples who scam hard working people out of their time and money. I would like to share with you some of the ways you can protect yourself and money from a scam artist.
Google Search – One of the easiest tools and free tools you can do is a Google search on the people and company. Use search terms like “Rent to Own scam” and “I was scammed by Rent to Own Company Name or Person name”. If some were scammed by an RTO company they will write about somewhere and evening go to the new media to tell their story. Bad news travel fast so don’t be afraid to find it.
Licensed Mortgage Agents and Realtors – Only work with RTO program that uses licensed Mortgage agents, Realtors. These professionals are held to a higher standard and are accountable for their industry licenses. If they are caught doing fraud or scams they can be barred, fined, and even jail time. In more cases or not they will not risk their license and name for a few thousand dollars.
Hire a Real Estate Lawyer – To protect you hire a real estate Lawyer to review any contracts provide by the RTO company. They can also do a Title Search on the property to make sure it free and clear of any liens. You don’t want to finish the rent to own and find out the landlord doesn’t own the property. Which means they can’t sell you something don’t own. Yes, the Lawyer will cost money but it worth it in the long run.
I think if you take these steps before and during working with an RTO program you will quickly find out if they truthful and helpful or just a scam. A scam artist will run for the hills once you start asking the tough questions and you demand to prove and reference material to back up there claims of home ownership in few years time.
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