Rent to own process in NH-questions

[redhed1968]

I am considering rent to own with my property since the sluggish economy isnt making it any easier to sell my house. Ive been oline trying to get info on what its about but have a few unanswered questions, if anyone can help me.
I plan on having the tenant put down a $3000 down payment upon moving in, then a additional monthly payment(on top of their rent payment) to apply towards the down payment. The lease will be either 12 or 18 months. If the tenant does not buy the house at the end of the lease, either due to change of heart or unable to get financing or whatever the reason may be, do I have to give them back all the money they have put in to the down payment or is it non refundable? What are the other general laws when it it comes to rent to own? If rent goes unpaid, is eviction a pain in the rear to get them out?

 

[Michael Wechsler]

It all depends upon what you and the prospective tenant agree. It sounds like the money is a refundable rental deposit to me. I don't know why anyone would want to lose a deposit on an option to buy at an unknown price and which will be arbitrarily set by the owner over a year later. Whatever you decide, you had better make it clear what the deal actually is.

 

[redhed1968]

The set home price would obviously be agreed on between both parties from the beginning and put into a contract. Im just wondering what happens if they bail out on the agreement. I dont know if this down payment money differs from a security deposit. Can some deposits/down payments be non refundable if the tenant/buyer doesnt follow thru?

 

[redhed1968]

I did end up talking to a lawyer yesterday (and lots of online research)and the money tenant buyer accrues towards the down payment is non refundable. It is not the same as a security deposit, and they defaulted on a contractual agreement. He warned me, however, most likely to happen is a tenant buyer unable to get financing or bailing out, coupled with not getting back a rather large chunk of money equals a bitter tenant who could cause problems such as not moving out at lease end forcing you to go thru a long hard court eviction that takes months(and money lost) and they could damage the home out of respite. Gotta revisit the rent to own idea...........