Ocean One – 3 Bedroom Rent-to-Own
RENT: $2,300 /mo – OWN: – $395,000
This 3-Bedroom, 3-Bath “RENT-TO-OWN” condominium is in the center of Cabarete Bay and the walk to the beach is measured in seconds. The terrace opens out to a private garden and swimming pool and instills a sense of living in a private villa. Adjacent is private parking with 24-hour security. The layout of this residence is well-planned with the master bedroom and en suite bath separated from the other 2 bedrooms by the main living area. This unit is special because the master bedroom has its own private entrance so it can also be used as “guest quarters”. There is a private dining area off the kitchen, and in addition, there is a breakfast bar facing the entertainment area of the main living room. This room is large enough to have both formal and casual sitting areas. The poolside terrace expands the entire width of the main living area with additional sliding glass doors from the master bedroom. The swimming pool in front of the garden-level terrace is just steps away which makes it seem private, but easily accessible. There is also a pool-view from the kitchen so that family and friends can be seen while preparing food or sitting at the breakfast bar.
The rent-to-own process is simple. For example, in a typical long-term rental agreement, the monthly rental rate is established and a security deposit is required to secure the rental agreement. The rent-to-own process is similar. The monthly rent is established and an agreement is made to confirm how much of each monthly rental payment is applied to the purchase price. It is sometimes necessary to pay a fee to receive an option to buy the property at a specified price. If this fee (not always required) is not collected up front, a monthly amount may be added to the rental payment as “option money”. This is all designed to prohibit the property owner from selling the property to somebody else at a higher price. The option fee payment is also protection against the property owner selling to a potential buyer with an all-cash offer to purchase.
For reference: a “Rent-to-Own” process is used when there is no down payment to purchase the property nor any option fee payment to lock in the purchase price. If this is the case, a portion of each monthly rental payment is applied to accumulate sufficient funds for an earnest money deposit or down payment. When sufficient funds for a down payment are accumulated through monthly rental payments, a formal “Offer to Purchase” agreement can be executed with reference to the earnest money deposit already received.
On a different note: when there is a down payment made at the beginning of occupancy — or an option fee is paid to lock in a purchase price — a “Seller Financing” process may be used as an alternative to the rent-to-own process. In other words, the rent-to-own process is by-passed and the renter-buyer becomes a “buyer” and goes straight to an offer to purchase. There are some cases where the rent-to-own process is used simply to accumulate the required down payment and the balance is then financed through an outside lender.
Request More Information
The Request More Information form below summarizes preferred elements of a rent-to-own agreement to see if a match can be made with owner objectives. If a middle-ground cannot be reached, the information may be presented to other owners to see if the renter-buyer objectives can be reached on a similar property.