Should I sign a Rent to Own agreement?

With the changes to rent to ownmortgage approval rules, it is harder than ever to be approved for a mortgage. This is a problem for both Buyers and Sellers. Buyers cannot afford to buy, and that means Sellers have fewer opportunities to sell their homes.

Many people wonder if a Rent to Own (also known as a Lease Option) is as good solution. Either a Buyer or Seller may suggest it if a potential sale is about to fall through because a mortgage cannot be approved or because a Buyer does not have a large enough down payment.

A Rent to Own Agreement has a number of potential pitfalls for both Buyers and Sellers.

Seller Considerations:

    • You are unable to sell the home to another interested Buyer for the duration of the Agreement
    • You essentially are a Landlord for the duration of the Agreement
    • Risk the Buyer will not qualify for a mortgage after the term of the Rent to Own is up

Buyer Considerations:

    • Risk that a bank will not consider the equity you build up as part of your down payment
    • Risk that you may lose any deposit you put down if you do not qualify for a mortgage
    • You are renting a property instead of owning it


Rent-to-Owns can be successful, and may, in some circumstances, be a good idea for you. Make sure you have a strong contract, and good legal advice before entering into any  agreement.

Book a consultation with Quick Click Law today  before you enter into a Rent to Own agreement.


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