Anyone have any experience with Rent-to-Own Agreements?

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   prairieprincessposted 14 years ago

   My husband and I are considering this for the mobile home we own, and can't seem to sell. Does anyone have any experience in this are? I've been researching, but still have some questions. Like, how are you protected, if the people wreck the place, and how many of these agreements actually work out well for both parties?
   
   I would love to hear from anyone with experience,  either as a buyer or a seller. Thanks!

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      jontaur81posted 14 years agoin reply to this

      If the mobile home is affixed to the ground ( is on a foundation) it is considered real property- if not it is personal property. Which is it; and State are you in?
      
      There is no guarantee that someone would not trash the place, you would need to get references from prior landlords; and /or get a responsible party to co-sign the agreement.
      
      If the agreement is structured properly, they work well.
      
      There are other ways( maybe better ways) to sell.
      
      Respond if you need more info.

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      sublett30posted 14 years agoin reply to this

      Where is the home located? I might be interested in it. Can you tell me about it?
      
      
      thanks

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   tlpoagueposted 14 years ago

   My sister is going through this with one of her homes. She recommends contract…contract…contract.  She had a renter that wanted to do a rent to own but didn’t draw up a detailed contract on how long he had to pay it off. Nor did she put in a contract the renter/buyer was responsible for any damages done to the place till the said property was paid off, or the person moved out. (I have been told it helps to have renters insurance, but have never checked into it myself.)  Any utilities was the renters responsibility.
   Had she have done this with her first renter, she would not have lost out in thousands of dollars replacing the walls, doors, carpets, and re-landscaping the yard his Great Dane destroyed while he was at work.
   With her second renter, she had a more detailed contract and hasn’t had any problems yet. She also kept every receipt on everything for that property.
   My husband and I are buying our house as a rent to own and went through the bank and realtor as an escrow account.
   Mainly you will want to be sure to protect yourself incase the deal goes sour and you are stuck with damages.

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      LiquidMercuryposted 14 years agoin reply to this

      Hi, with regards rent to own, without going into any great detail, I feel that you'd do well to look into the area of commercial property lease contracts as this is the format generally used for the rent to own contract in the residential arena.
      
      As with commercial contracts, the in going tenant / buyer, is generally responsible for all repairs etc until either they execute their option or, decline to execute the option, in which case the property is returned to the existing owner, baring in mind that during the contract all and any repairs would have been the responsibility of the tenant and future buyer.

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