A contract to Rent To Own A Home In Wichita Ks is an agreement between a renter; who rents the property with an option to buy it at a set price which has been agreed with the owner who is the seller. The actual purchase of the property takes place at a date in the future, this is usually three years. In the meantime, the renter takes up residence and lives in the home until the period is up. During this time the renter pays the owner a fee which is made up of rent and an amount which will be set aside as the eventual down payment. Until the transaction is complete, the renter is simply considered to be leasing the property.
When the contract between the seller and the renter is being negotiated, a price for the house is set, along with the term of the agreement. There is a risk associated with an agreement to Rent To Own A Home In Wichita Ks and that is the fluctuations that happen in the property market. It could be that the market improves considerably over the length of the agreement, hence the house could be worth considerably more, and this would give the renter the advantage of buying the house at a price somewhat less than the going rate. Conversely, if the market goes into a tail spin and collapses, the renter could end up paying more than he would have to had he nor been locked into the contract.
At the beginning of the contract the renter pays the owner a fee. This fee is added to the accrued amount at the end of the contract if the renter proceeds with the purchase, if the renter decides against the purchase, the owner keeps the fee. During the course of the agreement, the renter pays a rent plus an additional amount that is used, along with the fee, to make the eventual down payment. The seller will typically use the rent to pay the existing mortgage and holds the rest in escrow. Once again, if the renter decides against making the purchase, the amount held in escrow will revert to the owner and the renter ends up with nothing other than having rented a home for three years.
If you wish to enter into an arrangement where you can rent to own a home in Wichita KS, the best people to call are at Professional Home Buyers. They have a number of homes on their books that you can move into with no down payment and after an agreed time frame, you can own the home.
