Wheaton, IL Rent to Own Attorney

Knowledgeable Real Estate Attorney Helping With Rent to Own Contracts in DuPage County, IL

While renting to own has been given a bad name by unscrupulous actors, the truth is that entering a legally sound rent to own contract can be a great way for people who cannot come up with a large own payment to buy a house. In a rent to own arrangement, the tenant pays a monthly fee to the current homeowner. The homeowner keeps some of this money as rent and sets some aside to create a fund that will be used as the tenant's down payment if he or she decides to go through with buying the home when the rental period has expired. Rent to own arrangements usually last several years before there is a sale.

The McCormick Law Firm, LLC is experienced in helping people rent to own. Our knowledgeable DuPage County, IL real estate attorneys will review your contract and the details of the property carefully to help make sure you are making a sound decision and avoiding any questionable clauses. We will be with you through, during, and after you have signed your contract and moved in. You will always deal directly with Attorney Eron McCormick when you work with us - you will never be passed off to a paralegal or intern.

Is Rent to Own a Scam?

When you began to consider rent to own, you might have had people try to tell you that it is a scam. You may have a long-lost cousin or a friend of your neighbor who tried it and was ultimately unable to buy the house. However, many people succeed in buying through rent to own. The problem is that some unscrupulous homeowners will knowingly offer a rent to own deal to a tenant they know is not going to be able to secure financing for a real estate property at the end of the rental period. Other people who have unsuccessfully tried renting to own may feel that they were "scammed" if something went wrong and they were unable to get a mortgage. Usually, had the tenant done his or her research, he or she would have foreseen this outcome and gone with a traditional tenancy.

This is why you need a real estate lawyer when you are entering into a rent to own agreement. An attorney can help you start preparing to buy the home from the outset and give you realistic advice about what your transition from tenant to owner might look like. Just as we would help someone who is planning to buy a house outright, we will help you get ready to buy the house you are renting to own.

What Our Lawyers Look For in a Rent to Own Contract

Ensuring that you are getting a fair and reasonable contract that gives you the best chances of successfully buying the property is our top priority. A few things to look for in the contract language include:

• The phrase "lease purchase" - This language usually means that you are required to buy the house at a certain time instead of just having the option to.
• How option money is handled - Option money is the fee you pay for the option to buy the house later. This should not be more than seven percent of the sale price. Some landlord sellers will save this money and put it toward the purchase price, while other contracts allow the landlord seller to keep it.
• Structuring the down payment - When you have been paying rent that is in part going toward your down payment, this can make it difficult for some mortgage agencies to verify. We will work to arrange your contract so that a future mortgage lender can easily verify the amount you have paid towards your down payment.

Rent to own can be a great way for first-time homebuyers to enter the residential real estate market, but the contract should always be carefully reviewed by an experienced attorney.

Contact a Skilled Wheaton, IL Rent to Own Lawyer

The McCormick Law Firm, LLC has more than ten years of experience dealing with rent to own contracts. We will do all we can to make sure that you are entering a fair agreement you can rely on. Contact us at 630-517-8570 for a complimentary consultation.