The investor holds title during the rent to own program, which means they have a greater degree of control over the property. Another question you should be asking is about the investor: “what if the investor doesn’t honour the option agreement?” Again, this is a should ask question that nobody really talks about.
This is another potential situation that highlights the importance of having clearly written agreements in place for every rent to own transaction. Even with the proper agreements in place the truth here is that if the investor decides not to honour the option agreement, litigation may be required for the client to protect their option to purchase.
These sort of questions also highlight the importance of working with the right investors. I have seen instances where clients have entered into rent to own situations without proper written agreements in place and unethical investors have used the lack of formality to later take advantage of the clients.
Ownership Solutions screens both clients and investors to ensure we are working with the two parties who are really committed to working together to achieve win-win results. We also make sure that the proper written agreements are in place on every rent to own transaction to protect the interests of both parties.