What happens if a tenant is purchasing the unit or has a buy back option?

If you plan on purchasing your rental unit or at least are considering this option at the time of signing your lease, you may want to try and negotiate with your landlord to sign a “rent-to-own” lease option. The “rent-to-own” option gives you the option to terminate your lease early or wait until your lease period ends to buy the home. You are not obligated to buy the home, but the option is there for you. Otherwise, if you do not have this option in your contract, once you complete the sale to buy the home you are now technically your own landlord. This means you will also be obligated to be the landlord for the other tenants in the building.

As the buyer, when negotiating your sales contract, you should remember to include a clause that guarantees that you receive your security deposit back. One option is to ensure that ownership of the home is not transferred until the end of your leasing contract. This way you become the new landlord only after your old landlord has paid the deposit back.

This website provides general information related to the law designed to help users easily research about possible legal needs. This website does not provide legal advice and Provider is not a law firm.  Please consult your attorney for more specific information.

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