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    bigcountryhick's Avatar
    bigcountryhick Posts: 3, Reputation: 1
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    #1

    Feb 19, 2012, 11:29 AM
    Lease to own rights for buyer
    We are looking into a lease to own contract in Northern Idaho. Can the seller tell me I can or can't have animals, or smoke, basically am I just a renter until I buy the place or do I have more leeway because I have entered into a lease to own-- we also will be putting a substantial down payment on the home of over $40,000.00 at commencement of the lease.
    Thank you...
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Feb 19, 2012, 11:48 AM
    If you can afford that type of down payment, why not go for an outright purchase and get a mortgage? Lease to own or contract for deed transactions are usually where the buyer can't afford a down payment or get financing.

    But, to answer your question, yes, since the seller maintains ownership of the property, they can dictate details about its use. If they include clauses about pets and smoking then you either agree, negotiate or walk away.
    bigcountryhick's Avatar
    bigcountryhick Posts: 3, Reputation: 1
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    #3

    Feb 19, 2012, 12:10 PM
    Because we went through a bankruptcy a short time ago, and our credit is only in the 640's so regular financing is not an option right now...
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #4

    Feb 19, 2012, 12:18 PM
    Quote Originally Posted by bigcountryhick View Post
    Because we went through a bankruptcy a short time ago, and our credit is only in the 640's so regular financing is not an option right now...
    You do understand that there is always the option for the seller to hold the mortgage, if they so agree? That way, regular fiancing would not be necessary.
    bigcountryhick's Avatar
    bigcountryhick Posts: 3, Reputation: 1
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    #5

    Feb 19, 2012, 12:22 PM
    They are, we will have up to five years to find regular financing. By then hopefully we can get a conventional loan..
    Thank you all for your help..
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #6

    Feb 19, 2012, 12:32 PM
    Quote Originally Posted by bigcountryhick View Post
    They are, we will have up to five years to find regular financing. By then hopefully we can get a conventional loan..
    Thank you all for your help..
    "They are" what? AK suggested that INSTEAD of a lease to own, the seller give you a regular mortgage. This means YOU will own the property subject to their lien.

    Basically what it sounds like you have is a 5 year contract. If you can't obtain your own financing within that time, the contract ends and whatever you paid is forfeit. In the meantime the seller continues to own the property. And in that scenario they can dictate how it is used.

    Now just like you can walk away from this deal, the seller can decide not to offer financing.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #7

    Feb 19, 2012, 04:17 PM
    Yes I would not do a lease to own, there is really so little protection for the buyer, the sellers could have a large loan and end up being foreclosed and you just lose everything. I would never give that large of money on a lease.

    But no you are a renter with just a lease, the lease gives you optoins to buy, but is not a purchase till you buy it.
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