We are often asked about how things work if something happens in the life of the client. Another very important question you should be asking is about the investor: “what if the investor faces divorce, dies, or goes bankrupt?” Again this is a should ask rent to own question that nobody seems to talk about.
The truth here is that this can become a tricky situation and does pose a risk to the client. In each of these situations in the life of the investor, the investor or estate has some affairs to settle and the rent to own property can come into question. For this reason, it is critical to have strong written agreements in place so that the client’s interests are well documented and protected in any of these circumstances.
Seeing as the client lives in the rent to own home during the program, they will quickly become aware of any intention by the investor or their estate to sell the home and can use their option agreement as a means of blocking a sale. I have never seen this happen, but it is a possibility and the reality of this situation is that litigation could be required for the client to protect their purchase option.