Rent to Own Terms and Concepts to Learn

Here are some terms about Rent to Own and Option to Purchase Agreements.

Listen to this audio about these terms.

We really try to keep these terms clear and simple.

Lessor – Owner or Landlord

Lessee – Renter or Tenant

Optionor – gives the option

Optionee – pays for the option, and receives the option

What the Landlord – Owner – Optionor Wants or Needs – long term tenancy, clean tenant, quiet tenant, pays promptly, saves money to buy the house

What the Optionee – Tenant Buyer Wants or Needs –

• wants to stop renting,
• get ahead financially,
• not be evicted,
• have a nice home to live in

Option Consideration – non-refundable “money and-or services” that allow you to “exercise your option”.

Exercise Option – You choose to use your option before the option expires.

Option Credit – this increases your “Option Fund” when you exercise your option.

Building “Equity Fund” – Every month you can increase your fund so when you stop renting and get your home loan, this fund is at a maximum.