Since rent to own is a mortgage alternative, it works a little differently so it is important that the client is fully aware of both the benefits and drawbacks of their rent to own program. An important question mortgage brokers and Realtors should ask is “how do you make ensure the client understands rent to own?”
The first step is for us to have each client explain how rent to own works in their own words when we conduct our initial interview. This quickly lets us gauge where their understanding of the rent to own program is at and allows us to explain further or clarify where needed.
The second way we ensure the client understands the rent to own program is by clearly highlighting the risks as part of our screening process and make sure each client has acknowledged these risks.
Finally, we require every client to obtain independent legal advice on the agreements they will be signing. This gives them the opportunity to get unbiased expert advice on the rent to own program and then commit with a full understanding of how the program works and exactly what they are agreeing to.