Legal Question in Real Estate Law in New York

Rent with oprion to buy
How does rent with option to buy work? Who pays for things like taxes, insurance, upkeep, necessary repairs? How much of the rent goes toward the down payment? Do I need a contract? Is the buyer allowed to make major changes? If the buyer does not buy the house do I have to reimburse for the money they spent to make the changes?

Asked on 6/04/01, 4:31 pm

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Re: Rent with oprion to buy

An Option to buy is simply that: a right

to purchase the property. The Option itself

spells out the terms of the right to buy

including the purchase price, the timing,

the tax adjustments, and any credits against

the purchase price to be given for rent

payments or portions thereof or for any other

work done. Everything is negotiable. There is

no standard percentage. Because it affects

real estate, it must be in writing to be enforceable

There can be penalties for costs of improvements

This is rare, though, because the improvements stay

with the owner if the purchase is not made

You really should have an attorney do the contract

Answered on 7/09/01, 3:15 am

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