Hi,
I just read in another RTO thread that CMHC requires option money paid by the tenants to be kept in trust till the sale closes in the end of the lease term. I am planning to do a couple of RTO deals in the near furture and was wondering if experts and those with experience could share their insight on this.
I was under the impression that the downpayment already paid by tenants through option deposit+monthly credits could be shown as such in the agreement of purchase and sale. So in essence it would be a paper transaction for the most part. I am however, second guessing it now...
I was wondering if people with experience could share their thoughts on how to best structure Rent+Option payments so that the banks and CMHC are satisfied that tenant`s have the required downpayment when time comes to close the sale and for the tenants to secure their own financing?
Thanks in advance,
Vitaly
I just read in another RTO thread that CMHC requires option money paid by the tenants to be kept in trust till the sale closes in the end of the lease term. I am planning to do a couple of RTO deals in the near furture and was wondering if experts and those with experience could share their insight on this.
I was under the impression that the downpayment already paid by tenants through option deposit+monthly credits could be shown as such in the agreement of purchase and sale. So in essence it would be a paper transaction for the most part. I am however, second guessing it now...
I was wondering if people with experience could share their thoughts on how to best structure Rent+Option payments so that the banks and CMHC are satisfied that tenant`s have the required downpayment when time comes to close the sale and for the tenants to secure their own financing?
Thanks in advance,
Vitaly