I'm Purchasing a property as a "Rent to Own" and would like to know how enforceable the contract is. If it is enforceable how can I get the exact contract/wording needed.
After the "rent to own" contract is signed by all parties and I'm in the rental phase I plan on doing a fair amount of work to the property followed by renting it. My concern is that after the work is done and I'm ready to purchase the seller backs out and all the work I put into the unit would be forfeited.
Is there a good way to set everything up where this risk is minimal and IF it went to court I would definitely win.
I doubt the seller would back out or be difficult but I don't want to put myself in a risky spot.
Any help from someone who has done this or has a solid contract I could potentially get would be much appreciated. Also, could use a lawyer recommendation.
It is never a good idea and highly risky to make upgrades/improvements on a property that you don't own.
@Nick Donato I have Lease Option Contract if you want to take a look but would suggest an attorney review your specific situation. an added security step could be to get the option agreement notarized or even filed at the county (I have only filed contract for deed / land contracts, never option agreements).
@Nick Donato , you can always build the work that you complete into the contract, by this I mean use your "sweat equity" in lieu of consideration money. If that is already your plan, then it should already be spelled out in your agreement. I do this on both ends, if I pick up a property on LO that needs work, I negotiate to complete work by a fixed date in lieu of consideration money. This can be a powerful tool to use also if you don't want to do the work and build it into the sandwich if your strategy is to SLO the property.