Rent to own housing details?

[tahmelapachme33]

Please, I would prefer answers from those who have actually been involved in this kind of situation. Hypothetical answers are useless to me, sorry! If there are any links on information relating to this matter, then that is awesome, but I would prefer real life stories and experience. Thank you.

So I am looking for a rent to own house in Ontario Canada (obviously buying would be optimal but that is more difficult financially).

Would the same laws apply to me as a tenant renting a house? Or would I have more rights like a buyer?

Do owners of rent to own situations usually do house inspections? Or do I have the freedom of a home owner?

Normally I think landlords don't like to see you knocking walls down!

I know that many times this is kind of a situational thing depending on seller/landlord, but any info or advice is appreciated.

Right now I am in a rental situation. The terrible electrical work in this house is scary, it kills me to just leave it alone. I like to build and fix things. I hate living in a situation where that is not possible, or where the money and labour goes in but then you leave it all behind in a year.

Luckily there is a lot of freedom and I only saw the landlord once when I gave him the cheques! However, this house has a lot of problems and it is my primary focus to get out and buy a house. It is hard to save up with the cost of rent, so rent to own sounds appealing.

Thank you for your time!

[larry]

Please, I would prefer answers from those who have actually been involved in this kind of situation. Hypothetical answers are useless to me, sorry! If there are any links on information relating to this matter, then that is awesome, but I would prefer real life stories and experience. Thank you.

So I am looking for a rent to own house in Ontario Canada (obviously buying would be optimal but that is more difficult financially).

Would the same laws apply to me as a tenant renting a house? Or would I have more rights like a buyer?

Do owners of rent to own situations usually do house inspections? Or do I have the freedom of a home owner?

Normally I think landlords don't like to see you knocking walls down!

I know that many times this is kind of a situational thing depending on seller/landlord, but any info or advice is appreciated.

Right now I am in a rental situation. The terrible electrical work in this house is scary, it kills me to just leave it alone. I like to build and fix things. I hate living in a situation where that is not possible, or where the money and labour goes in but then you leave it all behind in a year.

Luckily there is a lot of freedom and I only saw the landlord once when I gave him the cheques! However, this house has a lot of problems and it is my primary focus to get out and buy a house. It is hard to save up with the cost of rent, so rent to own sounds appealing.

Thank you for your time!

It is not wise to get into a long term contract without professional advise.
I had a neighbor who was a judge in Ontario. He said your laws are much like the US laws.
There may be some standard program for rent to buy where you live. Down here
we would negotiate each detail and prepare a contract. But since you are not making a substantial
down payment, Sellers may not be willing. A second method we use is a "land contract"
where title does not convey until all payments are made. You would not be allowed to
make any changes without written permission from the seller
Either way, legal representation and preparation of the documents is almost
a requirement..

[emmanuil54]

Rent to own can be a great option for those who have bruised credit or trouble saving up for a down payment. Here are the answers to your questions:

The Residential Tenancies Act applies to your rental until such time as the closing date of the Agreement to Purchase. You will be paying an additional amount on top of your rent which will be held in trust by the owner and applied to your down payment on the closing date. This is not considered rent and this extra amount is not subject to the rules regarding rent and rent deposits in the RTA.

You do not own the house yet, so the owner will want to make sure you are not doing anything to decrease its value until the closing date. So he has the same right of inspection as any landlord.

One variation on the typical rent-to-own is called tenant first rent-to-own. In this scenario, you meet with the partner (we'll call him the seller for ease of reference) and he will conduct his due diligence on you; checking references and credit. You will agree to a plan to improve your credit so that you can qualify for your own mortgage 2-3 years in the future. Based on your earnings and how much you can pay in addition to your rent, the seller will determine how big a mortgage you are likely to qualify for once your credit picture improves. You can then engage a real estate agent and find the house you want within that price range. Once you have picked out the house, the seller buys it (sometimes with funds from a third party) and you sign the Agreement of Purchase with a closing date in a few years.

Meanwhile, you treat the house as if you owned it. You are responsible for all utilities, maintenance and improvements, because you have a vested interest in maintaining the property. Once or twice a year, the seller will meet with you, review your latest credit report and make sure you are still on the path to home ownership. When the closing date approaches, you arrange for your own mortgage, the seller applies your down payment, which by now will have built up to 20 - 25% of the agreed-upon selling price, your lender pays off the seller and you own the place completely!

Check out a couple of the web sites listed below.