Rent to Own
WHY “RENT TO OWN”?
“Calgary Sun- February 9, 2008 – I am saving for a down payment on a new house. Every time I feel I have enough saved, the prices rise. How can I afford to purchase a home? “ Kevin H. NW Calgary
There are two of factors to consider when looking at a Rent To Own plan:
1. Capacity – do you have the cash available (the capacity) to make monthly payments. The amount of cash required will depend on the property you wish to purchase. We can work with you on this.
2. Character –what type of person are you, for example: what cash/credit issues have you had in the past and how have you dealt with these issues. This information will assist in putting the program in place for you to get into a home.
THE PROCESS:
1. You provide information to the home owner for them to determine a rent to own program specifically for you.
2. Character is reviewed with the Buyer to obtain details on the current status. If the person has the capacity to make the payments, they are considered as potential Buyers.
3. The Buyer may be required to provide an initial down payment, subject to character information.
4. The Buyer will enter into an Agreement for Sale on the property, allowing for a possession date usually one year, with provisions to extend that possession date, if necessary.
5. The terms and conditions of this Agreement for Sale include a rental agreement. An additional amount will be included in the monthly payment, added to the payment on a monthly basis, and applied towards the final purchase price.
6. The Buyer registers the Agreement for Sale on title for security.
7. The purchase price is established as per ‘How the Property is valued for resale’.
Rent to Own (illustration):
How it works:
a) Market value is established
b) An administration fee is assessed
c) Sale price is agreed upon
- Market value is establised on a comparative market basis
- Administration fee similar to the fee that is charged by CMHC on their insured mortgages.
- The illustration is for demonstrations purposes and will vary with each property.
For additional information on this program, please contact:
MRL Group of Companies
Phone: 403-214-2400
Email: ron@mrlrealestate.ca
Marge & Ron Lessoway of the MRL Group of Companies are licensed under the Real Estate Act of Alberta. They have a shareholder's interest in the company and properties being offered for sale through this Rent to Own Program. Marge & Ron Lessoway are making this statement for the purpose of complying with the Real Estate Licensing Act of Alberta and its provisions.
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The above is provided for information only and should not be relied upon as accurate and is not warranted to be so. Readers are advised to obtain independent advice |