Home Rent to Own | Power of Sale/Foreclosure | Credit Management The Best Win-Win Options To Have A Home In Canada | Page 5

Rent-To-Own: What Can
It Mean For You
• Your usual arrangement is put in place between the owner of
the property and the tenant involving an agreement from
both sides on a set price and the period of time it would take
the second party to cover the amount, generally starting from
2 years onwards. It is easier to picture it as a mortgage,
without involving banks or outrageous, unexpected fees at the
end of the contract.
• As nothing is a simple as it sounds, there are a couple of
aspects one should be aware of before binding themselves to
such a contract. To be on the safe side, specialists
recommend having two contracts put in place – a regular
lease/tenancy one and a purchasing one. There is a common
misconception that the seller will set aside a specific amount
from the rent as the monthly down payment, but as it
happens, it’s not usually the case. The additional amount will
have to be paid on top of the rent and be highlighted as
appropriate to avoid any unforeseen issues in the future.