- What is a Rent2own lease option to purchase
- What are the first steps?
- What are my obligations?
- What are Creation Homes' obligations?
- What if I need more time to buy?
- What happens if I change my mind?
- How can I find a Rent2own home
- When can I move in?
1. What is a Rent2own Lease Option to Purchase?
A Rent2own lease option to purchase is one way for home buyers who have difficulties getting on to the property market to own their own home.
We (Creation Homes) lease the property to you for a set period of time. This lease contract gives you the right to buy the property at the end of the lease period, or earlier by mutual agreement, at a price agreed upon in the contract.
You pay an initial deposit or 'option fee' to us at the beginning of the lease. It is usually less than the down payment amount required to purchase the property in the conventional manner. This money is credited to the purchase price of the home if you buy the property. It is forfeit if you do not go through with the purchase. The option money is non-refundable.
Like any contract, the terms of a lease option are negotiable. The length of the lease typically can be up to three years, but anything may be agreed upon. The amount of the deposit, the purchase price of the house and the rent amount per month may also be up for negotiation. A portion of your monthly rent is credited toward the purchase, allowing you to save. During the lease period, we are legally bound not to sell the property to another buyer.
So for relatively little cash up front, our Rent2own lease option allows you to move into your own home quickly and easily without all the hassles you get with a conventional house purchase.
Your first step is to register your interest and let us know what type of property you are looking for. We'll then find a suitable home for you. Your next step is to work out how long you need to get mortgage or other financing in place or to make good any credit issues so that we can set a realistic contract period. We'll approve you and you could move in within a week!
Your obligations in renting the property are set out in the tenancy agreement and include:
i) Paying the rent on time
ii) Keeping the house in good condition and repair
iii) Remaining in control of the house - i.e. cannot leave it vacant for more than 30 days
iv) If the tenancy agreement is breached, the option to purchase may be automatically terminated and the deposit or option fee and rental premiums will be forefit.
Your obligations regarding your option to purchase the property are set out in the purchase contract and include:
i) The obligation to pay the deposit on time
ii) The obligation to advise us of your intention to buy the property and to allow sufficient time for all necessary steps (e.g. arranging a bank loan so that the purchase can be settled on or prior to expiry date.)
4. What are Rent2own's obligations?
Our obligations in renting the property to you are set out in the tenancy agreement and may include:
i) Renting the property to you at an agreed rent
ii) Fully crediting your rent premiums to your purchase of the house
iii) Covering the cost of any major repairs
iv) Honouring the term of the agreement
Our obligations regarding your option to purchase the property are set out in the purchase contract and include:
i) Selling the property at the agreed price as set out in the contract
ii) Not selling the property to another buyer unless you decide not to exercise your option to purchase.
5. What if I need more time to buy?
The sooner you let us know that you may need more time to buy the better. Don't wait until your option to purchase expires. Our intention is that you purchase their property so we will do our best to restructure the terms because we want this to work for you.
6. What happens if change my mind?
If you decide not to purchase the property at the end of your contract period or wish to terminate your tenancy earlier, then we will ask you to vacate the property and to leave it in a suitable condition. Your deposit or 'option fee' and your rent premium will be forfeit.
7. How can I find a Rent2own home
Contact us! We have a property database of available houses with new houses coming on our books daily. We have all types of homes in all types of areas. You can pre-register your interest and tell us what size and type of property you are looking for and your preferred locations.
Very often our Rent2own homes are vacant and available immediately! Once you are approved, you may be in your home within 3-5 days.