Lease to own - Is the tenant on title?

[VicChung]

Hello Everyone,

For lease to own, does anyone add the tenant on title? The reason I would add a tenant on title to benefit from a 5% downpayment. If you do add the tenant on title, is there a conflict with the lease to own lease? Any legalities?

Thanks,

Vic

 

[BHoward]

QUOTE (VicChung @ Apr 30 2009, 10:05 PM) Hello Everyone,

For lease to own, does anyone add the tenant on title? The reason I would add a tenant on title to benefit from a 5% downpayment. If you do add the tenant on title, is there a conflict with the lease to own lease? Any legalities?

Thanks,

Vic
...your question is confusing. Are you the buyer or seller? ... wait ... after closer reading ... I think you are buying a property for a rent to own tenant.

The way you speak of title is confusing.
The only person on title is the same person holding the mortgage.

There is no way the tenant is on title - unless you are working together to get the property. (Using both of your incomes to qualify.)

Wow ... there are soo many options in this business!

 

[markl]

Hi Vic,

If the tenant is on title that is not a lease to own. A lease to own is a standard lease with an option to purchase it at the end. What you seem to be describing is the perfect tenant strategy which Russel outlined some time ago. I don`t remember when.

The tenant would definitely be able to say they had rights in the property if they were on title.

I don`t know what forms are needed for the perfect tenant strategy as I have never done it.

Is this what you wanted to know?

Regards,

 

[wwds]

Hi Vic,

I`ve done a number of lease to owns, tenants are never on title until the money actually changes hands. Imagine, if they decide not to pay their rent to you anymore and you have to drag them before the tribunal. Or can you? Are they now really a tenant if they are a part owner. The tribunal may not consider them a tenant if they are on title and refuse to rule either way. Some ideas to ponder.


Best of luck
Steven

 

[VicChung]

QUOTE (wwds @ May 1 2009, 10:43 AM) Hi Vic,

I`ve done a number of lease to owns, tenants are never on title until the money actually changes hands. Imagine, if they decide not to pay their rent to you anymore and you have to drag them before the tribunal. Or can you? Are they now really a tenant if they are a part owner. The tribunal may not consider them a tenant if they are on title and refuse to rule either way. Some ideas to ponder.


Best of luck
Steven

Thanks everyone for your feedback. Mark, your answer is right on. I did not know it was called a perfect tenant strategy. It would be interesting to see the forms related to this strategy and if it protects the landlord from the issue that of the tenant being a co-owner and the tribunal refusing to rule either way??

thanks

 

[markl]

Vic,

If you would like those forms if you talk to a good Lawyer I am sure they can draw it up however you like. I don`t think this would be subject to the landlord tenant laws.