Common Contracts

Rent-to-own Material Risks-Borrowers

February 10th, 2021

• Filed
  February 10th, 2021

Ö Breaking the rent-to-own agreement:If client decides to break the rent-to-own agreement, or find the property is not suitable, client may lose their deposit, and depending upon how the contract is written, may lose all the money that was put aside for the deposit and/or down payment. Ö Lack of Security:Client’s agreement may be null and void if client is late on rent at any time – meaning not only client may get evicted but may lose all the money that was put aside for the deposit and/or down payment. Ö Change in life circumstances:Whether personally or financially, it can have a huge impact on clients’ ability to continue paying that rent premium or sticking to rent-to-own lease obligations. Should anything happen, the consequences can be devastating, and client may lose all the money that was put aside for the deposit and/or down payment. Ö Financing Not Guaranteed:After the lease expires and the client chooses to purchase the property, client still needs to secure financing, a