What is “Rent to Own”..?
The usage of Rent-to-Own transactions began in the United Kingdom and Europe, and first appeared in the Canada during the 1950s and 1960s. While rent-to-own terminology is most commonly associated with consumer goods transactions, the term is sometimes used in connection with real estate transactions. The newest law coming into effect known as “Physical control” is a progression towards owning something such as a parcel of land. Rent-To-Own Also known as rental Purchase, is a type of legally documented transaction under which tangible property such as Furniture, Home Appliances, Consumer Electronics is leased in exchange for a weekly or monthly payment, with the option to purchase at some point during the agreement. In our case the purchaser would require to pay a deposit, first payment, delivery and other fees up front if applicable.
A Rent to Own transaction differs from a traditional lease, in the lessee can purchase the leased item(s) at any time during the agreement (In a Traditional Lease the lessee has no right), the lessee can terminate the agreement at any time by simply returning the property, provide the account is up to date, and in our case if the account is paid in full within 90 Days from date of delivery, there is no interest charges, and an administration fee would apply.