Frequently Asked Questions on Rent-To-Own Homes

1. What is a rent-to-own option?

It means that you are renting the property with the option to purchase it at a future date. The future buying price of the property is agreed upon at the moment of signing the lease or rent contract. Usually, the buyer is asked to pay an upfront amount to purchase this option. The
amount usually varies, but is often five percent of the agreed sales price. In some agreements, the lump sum payment is applied towards the down payment of the house purchase. Such options are common in slow real estate markets.