Legal Question in Real Estate Law in New Jersey

Rent to own...or Two separate agreements

I have a house in NJ and a co-op in NY. I want to sell the co-op, but for tax reasons I don't want to sell until January 04. I found a buyer who is willing to rent until January and then buy. Should I put together some kind of rent to own agreement or should I have one agreement to rent for six months and another contract to buy, with a closing date in January? I was thinking of getting a months rent and a months security for the apt. And a non-refundable downpayment and signed contract now for the coop with a Jan. closing date. Any advise as to what I need to do to protect myself would be very helpful!


Asked on 5/22/03, 10:06 am

2 Answers from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Rent to own...or Two separate agreements

I suggest a lease with option to buy, with simultaneous exercise of the option. You could negotiate a deal where part of the rent could be applied against the purchase price. The document would provide for both rent and security, plus the deposit for the purchase. Since the buyer is leasing first, the home inspection should occur now, as the buyer will be responsible for maintenance of the property until closing. Be sure buyer's insurances are in place for fire and liability, and that you are named as an additional insured. If you need help with the contract call me at 973-377-3313 or e-mail me.

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Answered on 5/22/03, 10:27 am
Bernard J. Berkowitz Berkowitz & Raiken

Re: Rent to own...or Two separate agreements

If you are sure this is the one to buy your co-op, the best thing to do is have a contract to purchase with a use and occupancy agreement to occupy up to the closing. That way you tie the person to buying and they do not become a tenant. Since it is a coop, you probably have to go through an approval process for the person. You should consult an attorney in NY to be sure of the proper procedure and contract terms. If you have any NJ related matters I would be happy to help you. Good luck.

Bernie Berkowitz

973-808-2003

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Answered on 5/23/03, 9:35 am


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