QUESTIONS TO ASK
BEFORE PLUNGING IN Rent-to-own arrangements are studded with obstacles, real estate lawyers say. Here are a few.
Sellers/landlords
How will you put the house back on the market if the renters don’t want it, especially before their lease expires?
Who will tend to and pay for routine maintenance? Repairs?
What are the costs of setting up and managing an escrow account for the portion of rent allotted to the down payment?
Buyers/renters
How much of the rent is going to the down payment?
How much flexibility is there to extend the lease if you don’t want to buy the house but want to continue living there?
Will you feel pressured to buy the house by the owner/landlord?
If the house is put back on the market before your lease expires, will you be expected to keep it in ready-to-show condition, and comply with expectations of the owner or real estate broker?
Do you hope to strengthen your credit rating by paying rent on time, and if so, will the owner report your good habits to credit bureaus?
