Is there a material difference between "rent to own" and "seller financed"? What kind of lawyer helps with this?

Asked over 1 year ago - Woodstock, IL

I'm currently renting a house from a company. The company that owns it has very little interest in the real estate and seems open to selling rental property. My family would like to stay in the house long-term, and I'm considering asking them if we can arrange either a rent-to-own or a seller-financed agreement. We would be unable to finance through a bank due to credit problems. I'm unsure of which to ask for, and what kind of legal help I'd need to approach the company for the request and during the process.

Attorney answers (3)

  1. Emma Lee Scott

    Contributor Level 13

    5

    Lawyers agree

    Answered . You should find an experienced Real Estate attorney to explain these options to you and recommend which works best for your particular situation. That being said, be careful with rent to own contracts, as they are full of pitfalls that can cost you money. An attorney should carefully review any such agreement you sign.

    This answer is intended as informational only, and does not constitute legal advice or form an attorney-client... more
  2. Judy A. Goldstein

    Contributor Level 20

    1

    Lawyer agrees

    Answered . There is a significant different between rent to own and seller financed. You really ought to hire a real estate attorney to assist you with this transaction. The little you pay the attorney now could save you thousands down the road. Best wishes to you.

  3. Bradford David Miller

    Contributor Level 6

    1

    Lawyer agrees

    Answered . I agree with the other Attorneys. There can be big differences between the two. If you do not think you will qualify for a loan, seller financing may be the way to go, but definitely have the documents looked at by an experienced real estate attorney.

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