Things To Watch Out For When Using A Rent To Own Contract To Buy Your Home In Orange County

Using a rent to own contract can be a great way to purchase a house in Orange County, however, there are some things you should watch out for. Learn more about the process in our latest post!

Rent to own agreements are becoming increasingly popular with buyers in the Orange County area. It allows people who may have had one small setback to finally find the path to homeownership. It can help people who are ready to lay down roots today but lack the funds for a traditional down payment at the current moment. It can help people in all stages and situations who want to buy a home right away in the Orange County area! Below are a few things you should know and watch out for when using a rent to own contract to buy a house in Orange County!

Contract Terms

Not all contracts are the same. You’ll need to look over all the details to make sure there isn’t something in the contract that could come back to bite you. The downpayment, monthly lease payments, penalties, and the amount going to your down payment on the home need to be laid out so there are no discrepancies. You might also be faced with an “option fee” or a percentage of the taxes and insurance costs.

Repairs

Some leases will require the tenant to handle small repairs and maintenance to the home before they technically the owner. While most tenants don’t have a problem with this, it is important to include in your budget when purchasing a property this way. It’s important to make it clear who is responsible for what as to avoid any disagreement in the future.

Default

What happens if you are late on a payment? You don’t want a small infraction to end up costing you the house you want and the money you have put into it. While your down payment won’t be that of a loan, it still won’t be anything you will want to lose. Preferably, you should be on good terms with the seller so drastic measures are avoided for small and infrequent mistakes.

Contingencies

When agreeing to buy via a rent to own agreement, you’ll want to make sure you have an escape route should anything go wrong. If after you move in you discover there is a major problem with the house, you won’t want to have to be obligated to purchase the house or lose your money. Be sure there is a contingency in the contract allowing you to walk away if there is something fundamentally wrong with the house or the title.

Losing Money

If you have signed a contract but decide the house simply isn’t right for you when it comes time to purchase, you will be out the deposit money you paid upfront in addition to any rent overages you aid during the lease term. This can mean thousands of dollars the property owner will not need to give back to you. When going into a rent to own agreement, ideally you want to be 100% certain it is the right property and that you will be able to buy it with a traditional loan in two years or when your negotiated lease term is up. If you are confident, a rent to own contract can be a great way to buy a house in Orange County.

We only offer the best properties and rent to own situations for the clients we work with in the Orange County area. Let us help you find the rent to own situation that is right for you!

If you are interested in using a rent to own contract to buy a house in Orange County, reach out to us… we are here to help! 949-625-4533

Joe

Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

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