Legal Question in Real Estate Law in Canada
Rent to Own Home Agreements
We are wanting to Rent to Own a home. Do we involve the bank at this point, or is it a private agreement between us and the seller ?
The home is $200,000 and we are thinking of a 2 year contract where the "buy" portion of what we are giving the seller is available to us at the conclusion of the contract as a down payment(5%). We are considering the following:
$1200.00/month for 1st year (1000 is rent, 200 is "buy money". 2nd year $1700.00/month (1000 is rent, 700 is "buy money") = total of $10,800 + interest to use as downpayment.Is there a better way to do this ? What are some others concerns ?
We are intending to be responsible for upkeep & small repairs.The seller would handle large repairs and taxes. The seller could break contract and give us 100% of "buy money". We could break and get 50% of "buy money".
Please supply any advice. Much appreciated.
1 Answer from Attorneys
Re: Rent to Own Home Agreements
You should contact a lawyer to draft an agreement. You should not contact a bank at this point,
instead, you should put a clause in the contract that will protect you if a bank won't give you a loan in
two years.
Alan Pransky
Law Office of Alan J. Pransky
20 Eastbrook Road
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