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?
1 Answer from Attorneys
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
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