In the real estate world, a wide range of contractual formulas are spreading to acquire property buyers with a gradual outlay of the sale price. Indeed, the subject can enter into a rented rent agreement, i.e., during the lease period, it corresponds to a fee inclusive of a down payment or rent to buy. The formulas, as we will see, though at first glance seem to be the same, really are not.
Let’s look at the various contractual formulas analytically, pointing out that both rental rent and rent-to-buy are two alternative solutions to using the mortgage to buy real estate.
Rent to buy and rent with rents
Rent to Buy: The new rental term for Anglo-Saxon origin is a contractual type that aims to buy property.
It differs from the rent with the ransom, because through the rent to buy the seller rents the property blocking the price until the buyer is unable to get a bank loan.
The purpose of this contractual formula is to acquire the buyer’s requirements for access to a bank loan.
It is a fairly flexible formula that gives the buyer the advantage of immediately benefiting from the leased property and remaining in such a situation until it falls within the parameters for accessing the banking system.
Rent to rent: Rented property in Noida with redemption consists of the stipulation of two contracts, that of the lease and that of the option for the purchase; the buyer leases the property by paying a higher fee intended to cover a premium price, in the case of a purchase option expiring on expiry. Indeed, the purchase option contract in which the ransom price is entered is stipulated at the same time as the lease.
The rented property in Delhi contract with rents has advantages both for tenant-buyer and for the owner.
The buyer who does not want to use a bank loan at this time or wants to postpone the loan at a later date and for a lower amount may consider the convenience of resorting to this type of contract, also because the redemption price is predetermined. The landlord can benefit from a continuous entry as it will receive a higher fee.
The lease with purchase option
The sales contract is characterized by the fact that the seller is bound for a certain period to keep the proposal to conclude a sales contract with the buyer who may or may not accept.
The advantage of using these contracts is the possibility for the buyer to be able to enjoy the goods right away and to be able to decide within a specified period to buy the property. It is obvious that such a formula is suitable, for example, to those who want to accumulate supplies for a future purchase. This formula also applies to the landlord who will also be entitled to a higher rental rent here or will be able to rent a property that needs to be refurbished. The burden of this will be on the buyer who, unless he chooses to purchase the property, will have to in any case leave the improvements.