Lease Agreement Rent To Own Forms
If the market changes, you are bound by the contract and you cannot sell. If the contract contains a fixed purchase price, you may need to sell the property for less than the current market value. If the market moves in an unfavorable direction, potential buyers could pull out and the owner would have a property that is difficult to sell and difficult to rent without incoming cash flows. Rent to Own Contract is a kind of contract that mixes the provisions of a rental agreement and a real estate sale. The property for rent is the same property for sale that is given to the tenant as an opportunity to own the property he rents. Such a put option to the lessee may be exercised or agreed upon by the parties at a later date after a specified lease period of the immovable property or immediately after the start of the lease.