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rent with option to buy...... am i locked in a contract to buy the home?

Public Comments

1. No. That's why its called an "option" to buy.
2. No, you only have the "option" to buy the place. Typically you will have to pay extra rent or something and you won't get this back if you choose not to buy; so you will lose money if you don't buy the place. Still, each contract is different and its possible to write a contract where you were locked into buying (it shouldn't then be called "rent with option to buy" but anyhow contracts that lock you in can be written) so read the contract carefully and see what you are getting into before signing anything.
3. no It jut means a part of your rent go towards buying the home. If you decide not to buy you lose the money you have paid In a lot of cases the rent will be a higher rate. It can be a good idea for people who do not have or can not come up with a down payment . If you have a good credit rating put 25 dollars a week in the bank you should have about 1300 dollars in a year. That should cover the expenses at sale or closing Buy doing this you can shop around an or get a better deal
4. read the contract...but thats why they call it an OPTION. You shouldn't sign things you don't understand.
5. In Texas they don't have a standard contract designed for this. So any owner selling their house like this would have a lawyer draw up a contract (of course all in the sellers favor) that would be used. Some of the rent may or may not go toward purchase. The price may or may not be fixed in the beginning. The date of "purchase" may or may not be fixed from the very beginning. Most buyers end up regretting they ever got into one of these.
6. no - it is a lease with "optionn" to buy, other than a lease purchase where you have a binding contract to buy the home after a certain period of time. In your case it is just an option to you
7. Rent/lease with option to buy means you rent/lease the place for a set amount of time (one year, two years, etc.) , and by the end of your agreement/lease, you have the option of giving it up, renting for another period of time, or purchasing the home depending on what you and your landlord agreed to in writing. These rent options to buy usually ask for a downpayment from you that is non-refundable. The only thing you are "locked into" so to speak is the time you agreed to rent/lease. If you agreed to a year for example, then you decide you want to move out before the year is up, you would be obligated to paying the landlord the rent due for each month for the remainder of the agreement, even though you moved. Hope this helps :)
8. you are at a better positio. If you dont wany buy, just say Thanks and quit.