[stephiemgm]

We signed a Contract for Deed (I thought that it was a Rent-To-Own agreement, didn't know until later that there was a difference) over a year ago. The contract states that we make payments for 17 months and on the 18th month we pay the balance that is owed (called a balloon payment or something). It was explained to us like this was a rent-to-own and if we wanted we could walk away at the end of the contract, but would lose all the money. We are okay with that, but now we are wondering if we can even hand the house back over after the 18 months are up? I'm so confused. We have been planning to buy another house because the owners of the house have done us dirty. But when I started reading the contract and doing some research, I'm wondering if we can even walk away once the 18 months is up. Are we going to be forced to buy this house?

[ScottGem]

It depends on the terms of the contract. What does the contract say about defaulting? That is the key.

Contract for deed, Rent to own, contract for sale are all generally interchangeable terms. They refer to a situation where a buyer agrees to purchase a house on contract rather than a mortgage. Unlike a mortgage, the seller retains ownership until the terms of the contract are fulfilled. Only when the buyer completes the terms is the property transferred to them.

This makes it easier for the seller to regain control of the property in case of default. Usually such contracts revert to a rental lease on default. I can't see where the seller can hold you to fulfilling the terms of the contract if you refuse to. However, they can apply whatever penalties are stipulated in the contract in case of default.

Many such contracts do provide for a balloon payment at the end of the contract. The idea is to give the buyer a chance to get their own financing to make that payment.

So the bottom line is what does the contract say about default.

Also what do you mean that they done you dirty?

[Fr_Chuck]

How did they "do you dirty" there is not a lot of difference between a contact for deed and a rent to own.

In either case you do not own the house, the seller still owns the house, there is nothing to "nand over" you merely move out and they take possession.

In fact with most people, who sell on contract of deed. ( what I always did) we make a lot of money if you move out in first year or two, ** assuming they got a large enough first payment. I had one house I sold about 4 times. I loved it, made so much money.

You are tied to the contract, but normally you are liable as in rental for any damages to property, returning property same condition as found, minus any normal wear.