Rent to Buy Alert
Ever heard of ‘Rent to Buy’? Sounds too good to be true, well perhaps it is. This option is an alternative to the traditional process of purchasing a property.
‘Rent to Buy’ is where the tenant and the owner of the property enters into a contract that enables the tenant to purchase the property from the owner whilst they rent, without the need to obtain a home loan, going through real estate agents and undertaking the conveyancing process.
Many may choose this option for good reasons, one being no need to put down a deposit, no home loans required, the terms of payment can be flexible between the parties and the elimination or minimization of additional and incidental costs/fees of acquisition.
As good as ‘Rent to Buy' may sound, it is essential to have the contract reviewed by a solicitor and obtain legal advice before signing the contract.
Those who enter into a Rent to Buy contract have fewer rights in law than those who purchase property the traditional way. Not registered proprietors of the property or named under the mortgage, Rent-to-buyers are exposed to substantial risks.A Current Affair news provides the worst case scenario when a ‘Rent to Buy’ agreement fails. Unfortunately these Rent-to-buyers are facing eviction and the loss of their investments but are determined to fight their case and an impending class action may ensue.
View A Current Affair News Story: http://aca.ninemsn.com.au/article/8977594/real-estate-racketeers-ripping-off-aussie-battlers