Rent with option to purchase contract

[funster]

What are people´s views on rent to buy contracts? Does the price get fixed now for a future purchase date or do people use an average price valuation at the time the option is exercised? What size deposit is expected at the time the contract is written?
Many thanks everyone.

[Peanuts]

Two benefits spring to mind:

1 You can test the property before you buy it

2 Any rent you pay goes towards the sale price

Negatives might be:

1. The price and rent is higher than normal

2. Make sure there is no fixed date to buy, i.e. 12 months from signature, you might want to wait a bit longer...

and there should be no initial deposit, as you rent. Have a lawyer look at the contract regarding any pitfalls. If they want a 10% deposit you will loose it when you walk away.

[Carol55]

Two benefits spring to mind:

1 You can test the property before you buy it

2 Any rent you pay goes towards the sale price

Negatives might be:

1. The price and rent is higher than normal

2. Make sure there is no fixed date to buy, i.e. 12 months from signature, you might want to wait a bit longer...

and there should be no initial deposit, as you rent. Have a lawyer look at the contract regarding any pitfalls. If they want a 10% deposit you will loose it when you walk away.

The 'keyword' is 'Lawyer' make sure that he/she is conversant with Tenerife property marketing and if possible find a lawyer who comes recommended through friends or trusted acquaintances....never as Peanuts has stated part with any form of deposit before legal advice.