- BalaParticipant@balajiJoin Date: 2016Post Count: 5
I am thinking of putting up my investment property (current let out for rent) in the market on a ‘rent to own’ deal. This is the first time I will be doing such a deal, so here are a few first-timer questions (at the risk of sounding quite basic for some of the long-timers here :))
1. Who would be preparing the paperwork in this case? Would it be the solicitor or the property manager?
2. Would there be any other cost payable to the property manager irrespective of whether he prepares the paper or whether the buyer comes through him?
3. Once the deal is through, what will the property management fee be calculated on? Would it be a % on the rental component of the monthly payment alone or on the total monthly payment which also includes the deposit credit?
4. Is there a legal requirement to park the deposit credit(the amount over and above the rent in the monthly payment) in a separate account? If yes, is there any specific ‘type’ of account I should open, or would a normal savings account do?
5. If the buyer walks out of the deal mid-way through the lease term, do I have the discretion to decide how much of the deposit credit should be refunded to buyer? Is it common/uncommon to declare the entire deposit credit as of the date of walk out as non-refundable?
6. What are my obligations if I decide to call off the deal mid-way through the lease term?
Thanks in advance for all your help!
BalaTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
2. management fees etc
3. the rent
5. depends on your contract with them.
6. you can’t without a breach of contract or the other party agreeing.