Q: We are about to enter into a home purchase and I have one question I cant seem to find the answer to about deposits.
We are about to enter into a buy. Options were:
$7,000 down w/ $1700/mo rent
$12,000 down w/ $1600/mo rent
$22,500 down with $1525/mo loan payment
The first 2 options included $100 payment to go into the total down payment until it reaches the full $22,500 down payment. Then it will defer to the $1525/mo towards purchase price. If and when you make the full $22,500 down, you will be paying all money into the purchase. We will be paying the full 22,500 down because we felt it was best to avoid a rental term and go straight to purchase. However, now that we were sent our copy of the proposed deed agreement, it states we need to pay the 22,500 PLUS prorated rent if we want to occupy the home now. My question is, why would we be asked to pay RENT when we are not entering a rental contract?
Is this normal? I was under the impression that when you close a purchase agreement, you own it from that day on, not RENTING. I know terms are important but so is coming with yet more money upfront
A: Based upon your description of the rent/purchase options it looks like the documents sent to you are standard documents for a lease to own deal. You are correct that once you close the purchase you do not pay rent. Call the seller and tell them to correct the mistake in the documents before you close the purchase.
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