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Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: FL Real Estate
Satisfied Customers: 111655
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I would like to purchase a home through private sale.

Customer Question

I would like to purchase a home through private sale. Current owner still owes on the mortgage. We had discussed doing a rent to own contract, where we pay the monthly fees of the lien/insurance/property taxes for a period of five years, or until we can
secure our own financing or we pay off the existing balance, at which point we assume ownership of the property. Is this possible? What route do we take?
Submitted: 1 year ago.
Category: FL Real Estate
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

You can do a rent to purchase agreement whereby you pay the mortgage and taxes/insurance as long as the seller is willing to continue carrying the mortgage. This is easier to do than an assumption, which many banks will not agree upon anyhow. You pay the seller some amount and then take over the payments on the property. You do need to use a local attorney to make up a good contract to protect you as a buyer, because sometimes sellers are less than ethical and let you pay for awhile then try to evict you and if your contract is written correctly this would be prevented from occurring.

Customer: replied 1 year ago.
Thank you for your response! As it so happens, this was the exact way I was hoping to go about it, but I needed to make sure. That being said, I do have a couple more questions.Is this something that, with a little bit of research and, potentially, a consultant, we could type up at home? Do we have to notify the bank/mortgage lender of the arrangement? Do we have to file any notice of the arrangement with any court or legal systems?
Customer: replied 1 year ago.
Or, are we able to just get it typed up, pay his asking deposit, sign the contract (with a section denoting specified allocation of funds), have it notarized, and move in?
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your reply.

You could likely get a template online, such as http://keithringlaw.com/wp-content/uploads/2014/04/ResidentialLeaseWithOptionToPurchase-Sample.pdf

or http://larrygoins.com/files/Free%20Forms-Docs/Forms/Lease%20Agreement%20with%20Option%20to%20Purchase%20Real%20Estate.doc

If he is going through an attorney, the attorney will write it up.

The bank does not have to be notified. However, he should call the mortgage and add you as an authorized person to discuss the mortgage and you should pay the mortgage company directly, to avoid him taking the money and not paying the mortgage and you ending up in foreclosure.

You can file and record the lease when you complete it at the clerk of property records.

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