Free rent to own agreement contract can be downloaded at one’s convenience from legal sites that post them online. Such contract will have all the relevant points of the agreement clearly drawn out to facilitate easy understanding of the nature of agreement one is going to enter.
Prominently, consensus should be build upon the option fee and rent credit. Option fee is the amount of money the renter is required to shell out over and above the decided rent to claim ownership of the property after the contract expires, which usually is 1 to 3 years. The option consideration usually is 1 to 5% of the agreed upon purchase price of the property.
Rent credit is the credit made available to the buyer who plays a fair game with the owner. This essentially is important as the rent for property usually is higher than the existing market rates. The option fee is forfeited if the contemplated purchase does not take place. The renter and owner should go through and sign the agreement only after unanimity on all terms of the agreement has been reached.