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Rent to Own - procedure

Kilarney

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Hi,

I have a tenant prospect who wants to buy a condo unit I have for sale.
How do I structure the deal so I`m protected if they don`t/can`t close?

Are there any forms documents available on the REIN site?
For instance, what should the offer look like, what should the agreement look like.... I can`t seem to locate any threads on this.

Any help greatly appreciated.

Thanks

Brenda
 

JoeRagona

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QUOTE (Kilarney @ Nov 24 2008, 12:31 PM) Hi,

I have a tenant prospect who wants to buy a condo unit I have for sale.
How do I structure the deal so I`m protected if they don`t/can`t close?

Are there any forms documents available on the REIN site?
For instance, what should the offer look like, what should the agreement look like.... I can`t seem to locate any threads on this.

Any help greatly appreciated.

Thanks

Brenda

Hi Brenda,

The member section has many of the forms and lease samples you are requesting. I would still get them looked over and modified by your legal team so it protects you in the end.

Have you tried to search for rent to own, lease to own, rto? I`m sure there are many threads on this as I was the one who started a lot of them ...ha ha.

If you still have trouble finding what you are looking for, shoot me a PM and I will help out as much as I can as I have structured my current rent to own deals with the help of many of the professional people on this board.
 

Kilarney

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QUOTE (JDRInvestments @ Nov 25 2008, 07:41 AM) Hi Brenda,

The member section has many of the forms and lease samples you are requesting. I would still get them looked over and modified by your legal team so it protects you in the end.

Have you tried to search for rent to own, lease to own, rto? I`m sure there are many threads on this as I was the one who started a lot of them ...ha ha.

If you still have trouble finding what you are looking for, shoot me a PM and I will help out as much as I can as I have structured my current rent to own deals with the help of many of the professional people on this board.

Thanks Joe! Your help is much appreciated.
Brenda
 

markl

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Hi Brenda,

Shoot me an email and I can send you a current copy of the Lease with a purchase option that we use at Home Owner Soon.

Have you arranged a term? Have you had a mortgage broker look at their financials? When will they be in a position to buy the property from you. How much are they putting down on the property there are a lot of variables to LTO that need to be looked after to ensure a smooth and workable deal. I will endeavor to help in any way I can my email is [email protected]

Regards,
 

alexchee

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QUOTE (markl @ Nov 25 2008, 08:07 PM) Hi Brenda,

Shoot me an email and I can send you a current copy of the Lease with a purchase option that we use at Home Owner Soon.

Have you arranged a term? Have you had a mortgage broker look at their financials? When will they be in a position to buy the property from you. How much are they putting down on the property there are a lot of variables to LTO that need to be looked after to ensure a smooth and workable deal. I will endeavor to help in any way I can my email is [email protected]

Regards,

Dear all, i hope you can advise me on what to do. I brought a Townhouse and to lease to our family friend (new immigrant) using a RTO (using rein document) within 6 months. We agreed on the closing price and along the way, i have being helping them by introducing mortgage Specialist to try to get a mortgage. I even found a job for the couple, school for the kids and brought in the sister to lessen their burden for the lease.

Last week, the tenant gave me a verbal instruction that he is moving out by Dec 15. The wife to me that she check that agreement that i sign with him is not legal as it is not endorsed by a lawyer(no idea who has been advising them) and wants all the RTO Option deposit, monthly credit and Sercurity Deposit to be return to them + pay them back the improvements that they put in the house.

I spoke to a lawyer friend and was told that they had not grounds for that. Can anyone suggest a way out without losing a friendship, i always thought that a 20 yrs friendship going down the drain because of money is the stupidest thing to do. Perhaps the moral of the story is never the have good friend as your tenant?

Thanks

alex chee
 

PARAMJIT001

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Sep 8, 2007
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Try www.r2ownhome.com
Am sure you will have some questions answered. At this point i think you should seek legal advice for your options.
Just my 2 cents. hope this helps.
 

markl

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Hi Alex,

The forms have been tested at the tribunal so you should have no trouble enforcing them. Most likely they have gotten an opinion from a friend who is not a lawyer. As for the whole friendship aspect only you can decide what is appropriate but it sounds like they are abusing their friendship with you.

Regards,
 

neilds

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Nov 9, 2007
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Hi Mark,
I am considering a rent to own tenant for a property I am having trouble selling in this environment.
I would love to take you up on your offer of a copy of your Lease with Purchase option, and I think I will also use Robert to do the legal work if it goes ahead
Thanks
Neil

QUOTE (markl @ Nov 25 2008, 10:07 PM) Hi Brenda,

Shoot me an email and I can send you a current copy of the Lease with a purchase option that we use at Home Owner Soon.

Have you arranged a term? Have you had a mortgage broker look at their financials? When will they be in a position to buy the property from you. How much are they putting down on the property there are a lot of variables to LTO that need to be looked after to ensure a smooth and workable deal. I will endeavor to help in any way I can my email is [email protected]

Regards,
 

Dan_Eisenhauer

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Alex, this is going to end up being a personal choice for you... friendship or money??? My suspicion is that the friendship will go down the tubes no matter what you decide. If you keep the money, the friend will feel cheated. If you refund the money, you will feel cheated. You are in a no win situation. The friend has already made his choice.

I do not envy your position. If it were me, I would keep the money. The friendship would never be the same again, no matter what you decide.

Not knowing what you used for documentation, I can only assume you are on solid ground. You do not need either a lease or Option Agreement notarized by a lawyer, which is what I assume they are talking about.
 

alexchee

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QUOTE (Dan_Eisenhauer @ Feb 17 2009, 06:37 PM) Alex, this is going to end up being a personal choice for you... friendship or money??? My suspicion is that the friendship will go down the tubes no matter what you decide. If you keep the money, the friend will feel cheated. If you refund the money, you will feel cheated. You are in a no win situation. The friend has already made his choice.

I do not envy your position. If it were me, I would keep the money. The friendship would never be the same again, no matter what you decide.

Not knowing what you used for documentation, I can only assume you are on solid ground. You do not need either a lease or Option Agreement notarized by a lawyer, which is what I assume they are talking about.


I thought i will just give you an update on this experience so that we can learn from it. I proposed a 50/50 on the cost of the renovation and give them back the S/D with interest. They did not take up the offer, the "adviser" interpreted this as weakness and advised them to go for the whole 9 yards. The offer lapse without them exercising it.
They move out with some minor damages. We gave them back the S/D as promised as soon as possible. As the wife was calling 50 - 60 times / day on our cell phone - we decide to not called the police for the sake of their immigration status and 20+ years of friendship.

When we have new tenant, the wife went to the house to bad-mouth on us. The sister and the sister-in-law (which we help to look for employers to bring them to Canada) has made it their personal mission in life to destroy our business. Their employers were our good friends that we made when we started our foreign workers recruitment business.

The experience that i learn is:

a. Never rent to good friends.
b. In God we trust, all others bring papers - if not for the legal agreement, i would be in bigger trouble.
c. Never mix business with personal help.
 
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