Rent with option to buy , or preliminary reservation of ownership : the many faces of the rental with purchase option

Rent with option to buy , or preliminary reservation of ownership : the many faces of the rental with purchase option

if you do not have the initial capital needed to buy a house , a good alternative is to choose the option to buy rent or lease with purchase option . it is an institution midway between the mortgage and the rent : the future buyer pays a monthly fee slightly higher than the market and has the option , after a number of years , to ” redeem ” the house to a sum already agreed upon, serving part of the fees already paid to the owner . but the world is partly unexplored , and not completely standardized , with redemption of the rent has multiple options

the characteristics of the rental with purchase option
it is a lease with the transition of property that provides advantages both buyer and seller. the latter has a chance to earn an income higher than that of a traditional lease (usually more than 14% share of the rent per month ) , plus an amount equal to the advance – 6/8 % of the value of the home

with regard to the buyer, immediately enjoys the usufruct of the house that is going to buy, do not pay property taxes that are the responsibility of the owner and has a number of years (usually 2-4 years ) to obtain the capital necessary to complete the purchase

the various options
those who buy home through the rent with redemption can choose between two different options

purchase with purchase option with the buyer is given the opportunity to transform at any time into a sale and lease fees are already paid an advance for the purchase . the buyer has the advantage of being able to choose whether or not to purchase the property. the disadvantage is that the latter can not claim repayment of the sums already paid , while the seller that it will be difficult to regain the availability of the property. terms of taxation, as taxes are initially leased and later as a purchase, while the property tax is paid by the seller

purchase with purchase with pre – hung presents the advantages and tax obligations of the rent with option , but you must specify that the contract is prelimare not to risk mortgages and transcripts for a preliminary ruling to the seller. alternative way to solve this situation is the transcript in the real estate records , but ” protection ” is limited to 3 years

purchase with automatic redemption : in the contract there is a clause that provides for the automatic transfer of ownership of the property by the seller / lessor to the buyer to reaching a certain number of canons

with reservation of ownership : There is a clause in the contract that the sale and subsequent transfer of ownership is in place only with the payment of the last installment