Buying a house is everyone’s dream, but unfortunately it’s not always easy. In fact, to approve mortgage applications online or at a physical branch, banks require part of the price of the property, usually corresponding to 20% of the price, to be paid by the customer. When this is not possible, there are alternative solutions to rent, that is, the purchase with redemption or the planned purchase . Here’s what it is https://www.kindhousebuyers.com/wa/yakima/
What is Redemption Purchase
When the bank does not approve the loan application because the sum to pay the non-loanable amount is not available , those who dream of becoming an owner are faced with the possibility of having to give up their home forever because having to pay the rent it is difficult to even put aside the money to pay 20% of the final price .
On the other hand, the rent money is lost forever. This does not mean having to give up because there are alternative solutions. The first is the purchase with redemption also known as rent to buy. The formula allows you to enter into a future sale contract , but you can immediately go and occupy the property.
Obligation to transcribe the purchase contract with redemption and protection of the parties
The rental contract with redemption, or rather rent with purchase option must be transcribed in the public registers, in this way the future buyer is also protected against third parties who have claims on the property. Once the contract has been transcribed, any creditors will not be able to register a mortgage on the asset.
The contract by law must provide for a term, the same can be freely established by the parties but cannot exceed 10 years. It is anticipated that the tenant is free to buy the property or not at the end of the period provided for in the contract, if he decides not to buy the owner can withhold the sums paid . The parties can establish in the lease agreement with purchase option that the sums paid in case of non-purchase must be partially returned.