whats the difference between "rent with option to buy" and "rent to own" when it comes to real estate?
im just curious if theres even a difference?
Public Comments
- There isn't too much of a difference. Depending on how the agreement is structured, the Rent with an option to buy locks in the sale price of the home. Rent to own takes a small portion of your rent payment and applies it toward the future price of the home. Rent with an option to buy doesn't not usually. Bottom line- it all depends on how the agreements are structured. Every one is different.
- the "option" part means you get the option to purchase after a certain length of time, but doesn't commit you to purchase. A Rent to Own agreement usually means you are locked in to purchase after a certain time period.
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