A really common question and concern from people looking at renting to own a Florida house is “are you required to buy the house in a rent to own home contract ?” at the end of the rental term.
As an example…
… lets say you found a great Florida rent to own home and agreed on an attractive rent to own agreement (lease option) with the seller that looked like this…
– $10k upfront
– $1,800/mo
– $200k purchase price option at the end of the 24 month rental agreement
If you find yourself in the aforementioned scenario, you may have the opportunity to purchase the property for $200k within 24 months. Additionally, it is important to note that in many cases, you may have the option to purchase the property prior to the conclusion of the rental agreement without any complications.
So, Are You Required To Buy The House In A Rent To Own Home Contract / Agreement?
If the deadline of 24 months to purchase the home arrives and If you still lack the preparedness to make the purchase, but you still possess a strong emotional attachment to the property and the desire to continue residing there, it may be beneficial to reach out to the seller and explore the possibility of extending the rent-to-own arrangement.
If you have been a dependable tenant and have shown a sincere intention to purchase the property in the future, the seller might be willing to negotiate an extension as it can be mutually beneficial.
If the 24-month period has expired and you do not have any intention of purchasing the property or continuing to reside there, you can simply move out without facing any consequences.
What Happens To The Money You’ve Paid The House Owner Up To This Point?
If you decide not to purchase the house under the rent-to-own program, the time you spent living in the property will be considered a rental term, as you did not exercise your right to buy the home. It’s important to comprehend this fundamental distinction.
The agreement comprises two distinct components.
- A Rental Agreement: There is a standard rental agreement in which you pay a monthly rent for a specified period of time.
- The Option To Purchase: In a rent-to-own arrangement, there is typically a separate agreement that grants the tenant the option to purchase the property at a predetermined price in the future, in addition to the standard rental agreement where monthly rent payments are made for a specified period of time.
If you choose not to exercise your option to buy the house under a rent-to-own agreement, it essentially means that you have decided not to purchase the property. As a result, the time period that you have spent living in the property is considered as a rental period by all parties involved.
Rent-to-own agreements provide tenants and potential buyers with a high degree of flexibility in the transaction. If you choose to buy the home, you can do so at a predetermined price. On the other hand, if you decide not to purchase the property, it is not a significant issue. This type of agreement allows for both parties to have a clear understanding of the expectations and provides an opportunity for renters to become homeowners over time.
That concludes this article.:-)
If You’re Looking for Florida Rent To Own Houses…
… check out our Florida rent to own house program on this website and see our available rent to own / lease option homes by clicking the link below.