Rent With Option To Buy

Rent With Option To BuyOk, global economy is bad. Housing is tough. If you have your house on the market to sell, and do not yet have an offer on it, have no idea of how long it will take for that offer to come in, and, want to look for that next really nice home which you want for your next home, there is an avenue to pursue. You can consider renting your next house that you wish to purchase with an “Option” to buy it. Contract law and civil law changes state to state. I am not a member of the Bar Association. My article is based solely upon Broker/Realtor experience and my attorney’s advice to me as a real estate professional. Disclaimer being presented, I will move on. First, what is an Option? An Option is a unilateral agreement between parties. An Option requires “Consideration”. Consideration translates into money. The buyer/renter provides consideration to purchase the opportunity to be first in line to buy a property. Unilateral simply means that only one party is bound, that party being the seller. The seller is bound to give you first option to purchase the home per your agreement. You can latter decide not purchase the property, but in doing so you loose monies applied to the option to purchase. This is a very simplified explanation. As you can see, both buyer and seller may decide to choose legal assistance with this. I am currently working on a Sarasota, Florida Option to purchase. My Florida attorney demands the following: Agreement of all parties as to the conditions of the “Rental With Option To Buy”, a completed and signed lease, the attorney’s documents completed, and a blank Offer to Purchase contract from the buyers/renters real estate broker. Every thing must be agreed upon prior to sending this package to the attorney’s office, as the completed legal documents will be the final binding agreement. The Option attorney does not negotiate the lease or Option. He prepares and provides the binding documents. This is a rare occasion where verbal offers and agreement is a must. Stipulations will be binding once the completed attorney’s documents are returned and signed. The attorney’s final documents aren’t a rough draft. They are the final product, not to be altered by laymen. If all goes as planned, the buyer/renter then rents the dwelling until their property sells. The buyer/renter then exercises their option to purchase the home. The homeowner benefits because they are receiving money from rent that can be applied to the mortgage, or anywhere else as the owner chooses.

I will comment on “my” problems with options to buy.

Finding a home: I need to locate a vacant home that isn’t in arrears on mortgage or tax payments. I need to locate a homeowner that does not need cash for a down-stroke on his next home. This needs to be someone willing to do a rent with option to buy. Most importantly, I need to locate a home that fits my client’s specific and unusual needs. Twice now, I have had property owners with vacant homes for sale say yes to a rental and then change their minds and decide not to rent. Business problem: I am doing several weeks work without being paid. If my buyers/renters never exercise the option to buy I will not be paid for the sale of the property.

If you link to my blog, you will see that I also am an Illinois Northwest suburban broker. Although I have not yet entered into this business situation in Illinois, under the correct circumstances I am prepared to do so with my Illinois attorneys.

There you have it. Real estate these days need creative ideas to get things done. This is one such avenue to pursue.