Rent-to-Own Deals: Smart Questions to Ask...

I get calls everyday asking about rent with option to purchse. I've found some info from NAR regarding this process. Sometimes it sounds like a better idea than what it really is. If you are planning to go with an FHA loan this process may not work for you either. Make sure you work the process through from start to finish before signing.

Rent-to-Own Deals: Smart Questions to Ask...

For Sellers:

Who will tend to the property and pay for routine maintenance?
Who pays for major repairs?
What are the costs of setting up and managing an escrow account for the portion of rent allotted to the down payment?
Will you manage the property yourself, or hire an agent?
What if the renters change their minds? Who keeps the money in the escrow account?
If the buyers change their minds, what will be required to put the property back on the market?

For Buyers: How much of the rent is going to the down payment?
How locked in are you if you change your mind?
What will it cost you to get out of the deal?
How long will it take to accumulate enough of a down payment that you are likely to qualify for a mortgage?

Source: REALTOR® Magazine Online.