How a rental agreement with purchase option works

Rental contracts with purchase option are the order of the day. Due to the decrease in the number of sales, many owners have decided to opt for this type of contract to encourage the purchase of homes . However, do we really know how a rental agreement with option to purchase works ? In .com we explain it to you in detail.

What is rent with option to purchase?

This type of contract allows the rental of a home for a determined and stipulated time. After this period, the tenant will have the option to buy the house, obviously having priority over other buyers.

What is the benefit for the tenant / buyer?

The benefit is that the monthly rent that the lessee will deliver during that stipulated period of time will be deducted from the final purchase price. Therefore, during your rental years you are making an investment. In addition, you will have more time to decide on the purchase.

What is the benefit for the landlord / seller?

The landlord will spend that period receiving a fixed amount, therefore, that property will not cost money. In addition, you will not have the worry of looking for a buyer either.

Rights of the tenant

It is important to know that the tenant who accepts a contract with option to purchase, will not be obliged to buy it at the end of the stipulated rental period. It will simply have the option, as its name suggests.

Obligations of the owner

Once the rental period ends, the owner can not refuse to sell the house. However, it is better to make sure of it legally, because the truth is that if the owner dies, the heirs could refuse to sell it and create some kind of problem.

Contract

It is important to thoroughly review the contract. The same must include how many years the tenant may be in the house before having the option to purchase. In addition, basic aspects must also be included, such as who assumes expenses such as community expenses .

What are the disadvantages of this type of contract?

Mainly the variations of the CPI . Maybe at the time of purchase our future home is no longer worth what it was worth before, but if we have signed the price we do not have the right to a discount. In addition, normally the entrances of these floors tend to be higher than the deposits that are made in a normal rental. Therefore, the initial investment is higher.

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