lease to own question

**Janielynn** · 08-01-2011, 07:02 AM

Does anyone know if you are in a contract for lease to purchase and the owner of the house dies, is the contract still binding or does it void the agreement and the house goes to the heirs.

**Greg** · 08-02-2011, 04:47 AM

Is the contract recorded against the deed? If not then you have no protection even if the owner is still alive.

Lease to own is never a good idea for buyers. Too many opportunities for the seller to cheat the buyer and no protection for the buyer.

Plus if you are paying $1,000 rent and the typical rent for a similar property is $1,000 then none of the rent can be applied to the purchase. The only way any of the rent payment can be applied to the loan is the amount you pay over the typical rent for the area. ie. if typical rent is $1,000 a month and you are paying $1,500 then $500 can be applied to the loan/purchase price.

Good Luck

**Janielynn** · 08-02-2011, 07:49 AM

I'm not sure what that means exactly.... recorded against the deed??? Is this something that the mortgage holder has to agree to? Or can this be done legally between the owner and the lease to own?

**Greg** · 08-04-2011, 05:35 AM

There is a deed for the house recorded in the county courthouse. Anytime someone wants to make a claim against the house they record that claim by physically having it attached to that deed in the court house.

For instance, if the seller takes out a second loan against the house the lender will record that loan on the deed. This is done so if the owner sells the house those loans get paid off with the funds from the sale.

You have a lease to own which is basically an option to purchase. To protect you from the owner selling the house to someone else you need to have your lease option attached to the deed. Hire a lawyer to record your lease otherwise this seller can sell or give the house to anybody they want to and leave you with nothing but a piece of paper.