The tenant has the opportunity to buy the property before the end of his lease. In these times of crisis, rental with option to purchase also applies to housing.
Rent with option to buy a house or apartment
The lease with option to purchase is originally a process to use a property by paying royalties. We can stipulate this type of contract to buy a relatively expensive property like a car for example, hoping to buy it later. The tenant opts for this solution insofar as he does not immediately have the necessary financing to pay the property but that he thinks he can carry out purchase later.
What is the lease with option to purchase?
The lease with option to purchase allows people who can not afford to buy real estate immediately, to rent this property and buy it if they wish before the end of the lease. Generally, the rental price is higher than a rent. The lease must contain the option for the tenant to lift the option. It is sort of a split payment of the sales price. If the tenant does not raise the option within the time stipulated in the rental agreement, he loses everything he has given since the seller is no longer obliged to sell him the property first. In particular, he loses the right to remain in the premises.
From the moment this type of contract is stipulated, the seller can no longer retract and refuse to sell the property to his tenant if he wishes to lift the option.
The advantages of renting with option to buy
This type of contract allows to people who have limited means to access the property by postponing the moment of the purchase. This may allow them to make a contribution during the rental period to have a better chance of obtaining a mortgage to pay for housing. In addition, the sale price of the property is already specified in the contract. By signing such a contract, the buyer ensures that the stipulated selling price will not move. The amount of the property that has been agreed can not therefore be revised upwards by the seller.
In case of doubt about the purchase, the duration of the lease leaves the time to the tenant to reflect on this one. He may freely exercise the purchase option within the time limit stipulated in the lease agreement.
Three months before the expiry of the period stipulated by the parties in the rental agreement, the seller is required to give notice to the tenant.
Such a contract must be written in authentic form. It is the same for the contract involving the transfer of ownership.