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Canadian Quick Turn Real Estate
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17 Oct 2007
Calgary / Medicine Hat
8 Apr 2012 11:08 PM
I have recently re-engaged into the real estate investing world after taking a break.
I have several rent-to-own contracts in place. These are for properties that I hold title to. Many of the contracts were signed 2 to 3 years ago and many will be coming to term soon. I signed the contracts using as much "forward thinking" of what CMHC would want to see down the road. I also understand portions of the legal side has changed as well.
A few questions to what the latest and greatest rules may be.
Does the excess rental payments (credits) and the deposit get held in a lawyer's trust account? If not, how is the tenant buyer protected?
If they are not in a trust account, what would prevent the seller from spending the money?
If they are not in a trust account, what would happen if the seller was going through financial hardship, spent the money, and went into bankrupcy?
What happens if the house doesn't appraise for the agreed sell price at the end of the term?
Does the contract need to say that a portion of the deposit must be refundable. I heard something along these lines from Dan Heon.
What happens to the deposit and excess rental payments if the client is unable to close?
I'm curious to the feedback on the ratio people are getting with closing these deals
Has anyone out there been sued yet for a rent-to-own not closing?
Thank you in advance for your time
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