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What is a contract with an option to buy?
Rental with the right to buy is a mixed agreement consisting of two subcontracts, one for renting and the other for buying and selling. This modality allows the tenant to live rented in the dwelling for a determined period of time. At the end of this period, he/she will have the right to buy it for an agreed price, from which the rent paid so far will be totally or partially deducted.
It is, therefore, a type of contract that can be beneficial for both parties: for the tenant because he can live renting while he invests in a possible purchase; for the landlord because, while the tenant does not buy, he has his home rented with the premium as insurance.
This type of agreement does not necessarily mean a higher or lower rental fee than in a normal contract, but it does imply a higher initial outlay due to having to pay a premium for the option to buy, which is usually much higher than the amount paid in a deposit. In addition, in the case of the premium, and contrary to what happens with the deposit, if the tenant does not decide to buy the property in the end, he/she will lose the entire amount of the deposit.
For this reason, it is very important to make sure that, when the time comes, it will be possible to pay the purchase price or opt for a loan. Likewise, if it is clear that this is the most suitable option, before making or signing the contract, it is necessary to check that the property is free of any encumbrances.
So, if you are interested in signing a contract with option to buy or you intend to sign a purchase contract, and you want us to advise you, do not hesitate to contact us before making any investment. We will respond with urgency to your interests.