How can I create a rent-to-own agreement for a family friend with bad credit?
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How can I create a rent-to-own agreement for a family friend with bad credit?
I have a home with a mortgage on it but had to move for a job. I have a family
friend who would like to take over the mortgage payments, and when they are done with the payments I would deed the home to them. How could I go about doing this? Would a lease to own agreement be best?
Asked on August 5, 2018 under Real Estate Law, New Hampshire
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Yes, a lease to own would be best, and make sure that the agreement is clear that you do not transfer title until the full amount for the home is paid in full (all payments made). You should be able to use a standard or commercially available lease-to-own agreement as the starting point, but since the house is such a major asset for you, to make sure you protect yourself, bring your draft agreement to a landlord-tenant attorney in your state (every state has some difference in landlord-tenant law) to review with you.
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