Everything you should know about renting to buy

Everything you should know about renting to buy When it comes to acquiring a home, the question most clients ask themselves is whether to buy or to rent. However, the real estate market does not always make things easy. The difficulty in accessing credit and the current economic situation has caused many users, who were opting for the purchase, to end up forcibly deciding to rent. Renting to buy solves this conflict, and although it has always existed, in recent years it has gained special importance. In this blog post, ATIPIKA will try to answer some of the key questions regarding rent to own, both for owners and tenants or buyers. Renting to buy is a mixed option that allows the tenant to live rented for a limited period of time with the right, at the end of this period, to buy the property for a previously agreed price from which will be deducted, in whole or in part, the monthly rent paid until that time. It tends to be a particularly recurrent option when for any reason the buyer cannot or does not decide to pay the total amount of the purchase at that moment, but after a time living in rent, he has the possibility of concluding the purchase in notary''s office. This possibility of renting with option to buy is becoming more and more demanded, since it has many advantages to take into account. There is no specific regulation for this type of contract, that is to say, it is open in terms of conditions and private between both parts. If it were to be notarized, we would be obliged to pay the ITP, and it would have to be paid again at the moment of the purchase. In spite of this, the option is contemplated in the Law of Urban Leases and in the Mortgage Regulation. Both actions, i.e. the rental and the purchase, are linked to each other until such time as the right to purchase is executed within the stipulated period. In reality, they are two contracts, one for a term lease, and the other for a deposit with deferred payment, linked by a clause expressing the will of both parties to formalize a sale and purchase. Both contracts eventually end up merging into one and it is essential that all this information be included in the document signed by both parties. Thus, a lease-purchase contract must include the following: - Description of the property and its use or destination. - That both parts wish that the right of purchase exists. - A term to exercise the right to purchase, specifying a maximum to be agreed upon by both parties, no longer than two years. - A total price fixed at the moment of the signature, which will be the purchase price. - A monthly rent detailing, on the one hand, the rent, and on the other hand, the expenses and taxes on that property, as well as the deposit. - Amount of confirmatory deposits where, on the one hand, the owner is obliged to sell, returning the double if he does not fulfil the agreement and the tenant-buyer to lose everything contributed if he does not fulfil what has been agreed. - What percentage or part of the rents will be discounted from the fixed price and will be part of the total purchase and sale price. - If there is a premium for the purchase option. - The determination of the payment of taxes at the moment of the purchase of the property, which normally is all on account of the buyer, less the municipal capital gain. - Indemnification conditions in the event of default by the buyer or seller. The alternative of renting with option to buy offers multiple advantages, both for the owner and the tenant. In the case of the lessor or seller, that individual earns money from the first moment, so that they take advantage and profitability to the housing immediately and without renouncing to a future sale. In the case of the tenant or buyer, they ensure the sale of an apartment that interests them with a trial rental period, and, in addition, the monthly rental payments do not fall on deaf ears, since that part of the rent paid is discounted from the total purchase price. ATIPIKA has been providing a wide range of services related to the purchase and rental of properties for over 20 years, as well as numerous rent-to-own operations. Do not hesitate to contact us through our chat, email us at info@atipika.com or call our telephone number 93-4815032, for any real estate transaction. We will attend you from any of our offices in Barcelona, Baix Llobregat and Menorca. DISCOVER SOME OF OUR AVAILABLE RENT-TO-OWN PROPERTIES